Can someone help… Shares of the company Torm are traded in Danish kroner, but the head office seems to be in England (or is it)? Does dividend taxation follow Danish or English law?
The prospectus supplement states the following:
The 2016 Exchange offer document would also suggest that dividend taxation follows UK law.
https://www.sec.gov/Archives/edgar/data/1168351/000091957416012066/d7084350_ex1-2.htm
I am not familiar with the company, and something might have been missed during a quick browse of the documents. You will have to make the final interpretation yourself, but to me, the company appears to be English.
The EDGAR database is a good place to look for information on companies listed in the United States.
Thanks for the link. This is quite tricky… The image below quite clearly states that dividends are subject to UK taxation, but further down in the document it says “TORM A/S is headquartered in Copenhagen”. Aren’t dividends taxed according to the tax laws of the country where the headquarters are located?
A small reminder about the taxation of an equity savings account and withdrawing money from it. I have two brokerage accounts and an equity savings account (OST) at Nordnet. During the spring market turbulence, I sold some of my stock holdings, and thus had cash accumulated waiting for future investments in both my brokerage accounts and my OST account. Today, I decided to withdraw some of the “waiting money” from Nordnet to my bank account, and from there I immediately directed it to Svea to earn at least a little interest. I only just realized that I had accidentally made the withdrawal from the cash funds in my OST account (!). When placing the order on my phone, I had inadvertently chosen to make the withdrawal from my OST account instead of my brokerage accounts. And as a result, I will have to pay a significant amount of euros in taxes on the withdrawal made from my OST account (because there was approximately a 30% increase in value there). Completely unnecessary, as a similar amount was sitting in my brokerage account ready for withdrawal… I don’t think this mistake can be corrected anymore, but everyone else, please be careful…
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The reference to the Copenhagen headquarters is in a document dated 2016, before the corporate restructuring took place. The key is that the company mentioned is Torm A/S, not Torm plc. According to the quoted texts in the previous message, the listed parent company Torm plc (UK), whose domicile appears to be London, wholly owns the subsidiary Torm A/S (DK), whose domicile is Hellerup in the Copenhagen suburban area. Torm plc pays dividends to its shareholders, who can trade the parent company’s shares on two stock exchanges. The shares of the Danish subsidiary Torm A/S have not been traded on a stock exchange since the 2016 corporate restructuring. If an investor owns a company located in the United Kingdom, the dividends come from the United Kingdom and are subject to the tax treaty between Finland and the United Kingdom.
Absolutely fantastic, many thanks for this interpretation and detective work!!!
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Hello. If a company’s stock is listed on the London, Amsterdam, and New York stock exchanges, does it significantly matter where one buys the stock regarding dividend taxation (for a Finnish securities account)?
The listing location should not, in principle, affect dividend taxation. The company’s domicile determines the taxation. In some countries, local taxes may be withheld from dividends received from foreign shares listed there. The London, Amsterdam, and New York stock exchanges are not problematic in this regard.
If it’s a large English company like Shell or Unilever, when buying from London, the investor is charged stamp duty, which is 0.5 percent of the purchase price. On the other hand, when buying a stock dually listed in New York, an ADR/ADS fee is charged for each dividend of these companies.
As far as I understand, in London, stamp duty is avoided for AIM-listed shares and those domiciled in Guernsey, Jersey, the Isle of Man, or abroad. In addition to these factors, at least the stock’s liquidity on different exchanges should be taken into account when choosing the place of purchase.
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If tax evaders are caught and made to pay their own taxes, then others don’t have to pay their share as well.
If the tens of millions mentioned in the article were even €28.5M per year, that would mean €5/Finn or about €10/taxpayer less in tax revenue needed.
As this tax evasion on crypto gains has continued for years, a rather nice sum accumulates. Unfortunately, the tax authorities only investigate five years back, but tax criminals have to pay interest of just under 10% per year, which is to the fullest extent. Fines and prison sentences are separate matters.
So, each Finnish taxpayer would notionally pay about €150 less in taxes during one year, if and when crypto tax fraudsters are brought to heel. (Rough indicative calculation)
In your opinion, should
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Still small potatoes in actual tax evasion/tax planning, but it’s good if all taxes are brought to Finland. Around 5% of GDP is estimated to be evaded in taxes. There’s undeclared work, invoice trading, VAT fraud, cash wages without invoicing, accounting offenses, undeclared entrepreneurship, hiding capital, evading withholding taxes, etc..
Holding companies and all kinds of tax avoidance are not too complicated when there’s plenty of money. No need to pay taxes.. This on top of that.
An old snippet, but it gives some idea of the scale of the problem we’re talking about.. because of all sorts of swindlers, this country is also getting into debt..
But those loopholes will never be sufficiently plugged, because then even the rich would all have to participate in the collective effort..
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How does the taxation of bonus shares work? Let’s assume I have, for example, 100 Posti bonus shares and I hold them for a year. Then I get 10 additional shares. The total holding is then 110 shares. And they convert into regular Posti shares. Is the acquisition cost of these 10 shares 0€ and the other shares 7.5€, or is the acquisition cost of each share 6.82€?
If the acquisition cost of the additional shares becomes 0€, are they first or last in line according to the FIFO principle?
In my view, the acquisition cost of each is approximately €6.82.
“The acquisition time of a bonus share is calculated from the acquisition moment of the original shares. The acquisition cost of a bonus share is determined based on the price paid for the shares entitling to the bonus share at the time of their acquisition. For example, in the case mentioned above, the acquisition cost of one share is calculated by dividing the price paid for ten shares by eleven. This calculated acquisition cost is used when calculating the capital gain or loss arising from the disposal of both the originally acquired shares and the bonus share received based on them. The presumptive acquisition cost is used if it is greater than the actual acquisition cost of the share.”
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What possibilities are there to find out if an heir has received an advance inheritance and how much? Likewise, has money been received as a gift during the last 3 years?
In theory, declarations should be made to the tax authorities, but if they haven’t been made, can other heirs, the tax authority, or the estate administrator find this out?
Not a direct answer to the question, but the question seems to touch upon the topic of the government’s new proposal, where the tax authority would have access to all citizens’ accounts without any specific grounds.
Probably the “idea” has been precisely to collect gift/inheritance taxes, crypto gains, grey economy, etc., but I personally feel that this possible reform is a direct step towards a deeper “Big Brother is watching” system. (Move to a better discussion if one exists)
And then my own view on the question: if the amount in question were potentially interesting from the tax authority’s perspective, the tax authority could investigate the matter, in which case the estate might also get clarification on the matter?
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I don’t know if this really belongs here, but I’ll post it anyway.
So, now that you can add deductions to the 2025 tax return, where is the section for expenses for the production of capital income?
The only section that appears there says:
Do not report costs related to grants, the deduction for a second home for work, or expenses for the production of capital income. Report these deductions separately in the sections reserved for them.
And after this, there is no separate section where those should be reported.
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The Tax Administration has instructions on how to report various items on the pre-completed tax return: Esitäytetty veroilmoitus - näin ilmoitat OmaVerossa tai paperilla - vero.fi
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The pre-filled tax return contains more extensive information than what is currently available in MyTax (OmaVero). The pre-filled return will include, among other things, trades made on the stock exchange or in funds as reported by the broker(s), interest information reported by banks, etc. There will likely be an additional section where those other expenses can be added.
So the problem was that the specific section for reporting deductions does not exist.
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@Voihan There is a free-text field in one section where you fill those in, but it’s also hidden at first, so you have to click the section open.
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So, to try and clarify further, the section in question is not Yet found in MyTax (OmaVero); it will appear in due course within a month or two, once the pre-filled tax return arrives. I was mulling over and cursing the same thing a few years ago. It’s exactly these kinds of ‘obvious’ things that are not mentioned (anywhere)..