Aberdeen e-alert - Issue 2014-06 | KPMG | LU
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Aberdeen e-alert - Issue 2014-06

Aberdeen e-alert - Issue 2014-06



Head of Tax

KPMG in Luxembourg


Related content

The Swedish Administrative Court of Appeal opens the door to the payment of interest on withholding tax refunds

At the beginning of September, the Swedish Administrative Court of Appeal (“the Court”) granted interest for late payment on withholding tax amounts repaid to foreign investment funds, including SICAVs (“The Claimants”), in four different judgments.



The Claimants were arguing that foreign investment funds have the right not only to reclaim withholding tax (“WHT”) refunds, but also to reclaim interest on the repaid amounts.

Although there are no rules in this respect in the Swedish WHT Act, the Court accepted this argument.

The Court ruled that:

  • Under EU practice, Member states have to pay interest on taxes and charges levied in breach of EU Law. Consequently, non-resident funds should have the right to reclaim interest on WHT refunds.
  • Interest should be computed on the base interest rate laid down by the Tax Agency. Therefore they are likely to change during the year. For the period 2003-2013, they should range from 0.00% to 1.80%.
  • Interest should run from the day after filing the WHT reclaim until the day the WHT is repaid.


KPMG comments

This decision should be a positive evolution for non-resident investment funds willing to file WHT reclaims in Sweden.

These new judgments also raise new possibilities regarding interest on refunded amounts to funds who have already received positive judgments regarding WHT refunds, however not including interest. Indeed, they now have a possibility to reclaim interest within two months after the notification of the decision of reimbursement.

Please note that the Swedish Tax Agency might appeal the judgments before the Supreme Administrative Court, which may have a different position from the one of the Court. The Claimants may also appeal this decision, in order to obtain interest from an earlier date. We believe however that both solutions are unlikely.


For further information, please do not hesitate to contact us.







The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough



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