Relief from Faroese dividend tax

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) demand a withholding of 35% in dividend taxes, 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 Britain, 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 the refund, shareholders are required to fill out a form and send it by post or email to TAKS. Find the form in Danish here or 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 the residing country and the Faroe Islands.  

 

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