Disclosure requirements - Securities issued in LuxCSD under Finnish law
Clients are advised that Finnish laws and regulations may require LuxCSD to disclose holding information and details of final beneficial owner with respect to the securities issued in LuxCSD under Finnish law and held in LuxCSD.
Consent
As holders of securities, clients shall comply with the legal and regulatory requirements applicable to securities issued in LuxCSD under Finnish law, including the disclosure requirements described herein.
Clients are hereby deemed to consent to disclosure, without undue delay, and to the appointment of the requestor (for example, but not limited to, the issuer or its agent or Finnish Tax Authorities) as their attorney-in-fact, under power of attorney, to collect from LuxCSD such information as is required to be disclosed. Clients holding those securities on behalf of a Finnish tax resident individual beneficial owner that is subject to the maximum default withholding tax rate of 30% through LuxCSD, the respective client must disclose to LuxCSD the details of the individual beneficiary resident in Finland due to reporting requirements.
Clients not willing to give this consent cannot hold such securities and/or financial instruments in their account with LuxCSD.
Background and legal basis
In accordance with the Act on the Taxation of Non-residents’ Income (627/1978), Act on Tax Prepayments (1118/1996) and Act on Income Tax (1535/1992), as amended, the issuer as the payor of the income from the securities must identify whether the beneficial owner is a resident or a non-resident taxpayer.
The issuer has the obligation to withhold tax at source on income paid to certain type of resident beneficial owners is further responsible for verifying that the requirements for applying a tax at source benefit in accordance with a tax treaty or the national law are fulfilled. The beneficial owner is responsible for providing the issuer (or the requestor) with the evidence required for applying the benefit. As evidence, the beneficial owner can provide a tax at source card issued to them by the Tax Administration or a certificate issued by the tax authority of their country of residence, or present their name, identification information and address in their country of residence.
Sanctions
Failure to comply with the disclosure requirements may result in withholding of tax on the income paid to the client.