Standard refund – Norwegian equities
Eligible beneficial owners
A standard reclaim of withholding tax is available if relief at source or quick refund have not been obtained by beneficial owners eligible for the reduced tax rate.
Equities | ||
Beneficial owner | Effective Tax Rate after refund | Tax refund available |
Non-resident of a DTT country | DTT | Tax treaty rate or 25%, whichever is lower |
Non-resident EEA entities qualifying for the tax-exemption method - Note a | 0% | 25% |
International organisations and foreign governments | 0% | 25% |
Documentation requirements
The certification required varies according to the type of eligible beneficial owner, as follows:
Resident of a DTT country
- Letter of Request to Clearstream Banking for Reclaim of Norwegian Withholding Tax;
- Application for refund of Norwegian withholding tax under DTT - Individuals (prefilled version); or
- Application for refund of Norwegian withholding tax under DTT – Legal entities (prefilled version);
- Certificate of Residence;
- Letter to the Norwegian Tax Authorities (for legal entities only);
- Power of Attorney from the Beneficial Owner to Clearstream Banking;
- Credit Advice.
Foreign EEA entities qualifying for the tax-exemption method
- Letter of Request to Clearstream Banking for Reclaim of Norwegian Withholding Tax;
- Application for refund of Norwegian withholding tax under the tax exemption method (prefilled version);
- Certificate of Residence;
- Norwegian Attestation;
- Articles of Association;
- Power of Attorney from the Beneficial Owner to Clearstream Banking;
- Credit Advice.
N.B.: For reclaims for foreign exempt corporations resident in EEA countries, the Norwegian Tax Authorities may require the beneficial owner to submit additional supporting information to establish eligibility for a refund regarding:
- The legal structure of the claiming entity. A refund claimant that is not a company with limited liability must submit the information necessary to decide whether it conforms to the tax-exemption model.
- Whether the entity is a fully or partially tax-exempt entity or not.
- Whether the entity invests its own capital or capital belonging to other persons or entities on their behalf.
- Who is actually taxed on the dividends from Norway as such: the entity itself, a trustee or the investors; and in which state the dividends are taxed. The claimant must confirm that the tax is not levied on the company in its capacity as trustee or as any kind of advanced tax, levied in fact on behalf of other investors that later may claim a tax credit for this tax.
International organisations or foreign governments approved as exempt by the Norwegian Tax Authorities
- Letter of Request to Clearstream Banking for Reclaim of Norwegian Withholding Tax;
- Request to the Norwegian Tax Authorities for Tax Refund;
- Certificate of Residence;
- Proof of Tax Exemption;
- Power of Attorney from the Beneficial Owner to Clearstream Banking;
- Credit Advice.
Statutory deadline for reclaiming withholding tax
The statutory deadline for reclaiming withholding tax is five years after the end of the calendar year in which the dividend was paid.
Clearstream deadline for standard refund applications
The deadline by which Clearstream Banking must receive the documentation for a standard refund application (whether ordinary or under the tax-exemption model) is, at the latest, four months before the statutory deadline.
All standard refund applications received after this deadline will be processed by Clearstream Banking on a "best efforts" basis. However, in such cases, Clearstream Banking will apply an extra charge and accepts no responsibility for forms that have not reached the Norwegian Tax Authorities by the date considered as being the statute of limitations deadline.
When are refunds received?
The estimated time for receiving a refund is twelve months from the date of receipt of the refund application by the Norwegian Tax Authorities, although this can vary depending on when the application is filed and on the complexity of the information supplied in the reclaim form.
According to confirmation received from the Norwegian Tax Authorities, if a refund of withholding tax is paid after publication of the following year’s tax assessment (normally, in early October but the actual date varies from year to year), interest is calculated and added to the refund amount.
Calculated amount:
Interest on refunded withholding tax is calculated according to Norwegian regulation no. 272 of 26 February 1999 concerning credit interest and interest surcharge on taxes.
The calculation method is rather complex and the data used may not be communicated to Clearstream Banking. Clearstream Banking therefore accepts no responsibility for the correctness of the calculated interest but credits the customer account with the amount as refunded by the Norwegian Tax Authorities.
Notes on tax reclaims
Customers warrant the completeness and accuracy of the information they supply to Clearstream Banking.
It is the customer's responsibility to determine any entitlement to a refund of tax withheld, to complete the forms required correctly and to calculate the amount due. Clearstream Banking is under no obligation to carry out any investigation in respect of such information.
Clearstream Banking accepts no responsibility for the acceptance or non-acceptance by the tax authorities of the refund applications nor for the reimbursement of taxes paid.