The Supreme Administrative Court concluded in September 2013 that the Finnish Tax Administration should pay interest on the refunded withholding taxes (“ WHT”) that have been levied in contradiction with EU law. This approach is applied automatically to cases pending before the Tax Administration. In respect of cases already decided by the Tax Administration, the taxpayer should file an appeal in order to receive interest payment on the already refunded WHT. The time limitation period to claim interest is five calendar years from the date of the refund decision.
The interest rate applicable to WHT refunds fluctuates annually. In the years 2006 to 2013 the rates have ranged between 0,5% and 2,5%. As the decision was given very recently, the Tax Administration has not yet issued guidelines on how the interest will be calculated, i.e. what is the applicable interest period.
This decision is excellent news for all Luxembourg funds that have filed WHT reclaims in Finland. For tax reclaims that have already given rise to reimbursements, we recommend filing an appeal in order to receive the interest on already refunded WHT.
For further information, please do not hesitate to contact us
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.