Dividend distribution as shares or other securities securities – how the company files and pays transfer tax
The act on transfer tax will change on 1 January 2025
According to the amended legislation, companies distributing dividends are liable for transfer tax if the company distributes dividends as shares or other securities.
If the dividends are withdrawable on or after 1 January 2025, the company must file a transfer tax return and pay the tax. If the decision to distribute dividends does not specify the date on which the dividends become withdrawable, the company is liable for transfer tax if the decision is made on or after 1 January 2025.
The company can file the transfer tax return on dividends distributed as securities in MyTax starting 1 January 2025.
These instructions are for Finnish companies distributing dividends in the form of shares or other securities. These types of dividends are also known as non-cash dividends or dividends in natura.
If the company distributes business shares, shares in real estate companies, or other such securities as dividends, it must file a transfer tax return and pay the tax using its own reference number for transfer tax. The company must also file the return in the same way if it has distributed assets from an unrestricted equity fund.
The company needs to file only one transfer tax return if it distributes dividends as securities. The recipients of the dividends do not need to be specified on the transfer tax return. Report the details of the dividend recipients separately on the annual information return. Read more about annual information returns.
File the return and pay the tax within 2 months from the date on which the dividends became withdrawable as stated in the decision to distribute dividends. If the date is not specified in the decision, the return must be filed within 2 months from the date on which the decision to distribute dividends was issued.
File the transfer tax return in MyTax
Log in to MyTax and select Act on behalf of a company. Companies cannot file the return on paper. Read more about identification and authorisations.
File the transfer tax return following these instructions: How to file a transfer tax return in MyTax. When filling in the return, note the following:
- In the field Sale date, enter the date when the dividends became withdrawable. If the decision to distribute dividends does not state the date on which the dividends became withdrawable, enter the date when the decision was made. The sale date cannot be earlier than 1 January 2025.
- In the field Property acquired by contract, select select the type of the securities distributed as dividends.
- Then select “Dividend distribution as shares or other securities (in natura)” as contract type.