Finland reduces statute of limitations of withholding tax refunds from 5 to 3 years

Finland reduces statute of limitations of withholding tax refunds from 5 to 3 years

In July 2016, the Finnish Parliament passed a bill amending the statute of limitations applicable to the tax assessment of various taxes. In addition to the amendments to the statute of limitations under the tax assessment procedure, the withholding tax procedure statute of limitations was reduced.

The amendment of the Act on the Taxation of Nonresidents’ Income reduces the statute of limitations for withholding tax reclaims from 5 to 3 years. The amendments will enter into force on 1 January 2017 and will be applicable to withholding taxes levied after the respective date. The statute of limitations applies to the taxation of dividends, interest and royalties payable to a nonresident recipient.

 

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