In accordance with the Nordic tax treaty for the avoidance of double taxation, shareholders from the Nordic countries are eligible for a dividend tax refund.

The Faroese tax authorities (TAKS) impose a 35% withholding tax on dividends, for which Nordic shareholders are eligible for a refund of 20% of the dividend payment. Hence, a minimum of 15% in Faroese dividend tax applies to Nordic shareholders.

In addition to the Nordic tax treaty, the Faroe Islands also has double taxation treaties with the UK, Switzerland and India. Shareholders residing in these countries are eligible for a dividend tax refund in accordance with the rates specified in these respective treaties.  

To claim a refund, shareholders are required to fill in a form and send it by post or email to TAKS. The form may be found in English here. Before sending the form to TAKS, shareholders need documentation from the competent tax authority to certify that they are covered by the double taxation treaty between their country of residence and the Faroe Islands.  

For assistance to fill in the form, reach out to TAKS by phone at (+298) 35 26 00 or by email at taks@taks.fo.