W-8BEN-E for a Finnish Oy or Oyj: the 5% royalty paragraph is gone, and a sample PDF
This article was created with AI assistance and has not been reviewed by a human editor. It is provided for general informational purposes only and does not constitute tax, legal, or financial advice.
Treaty articles and rates on this page are checked against the US-Finland Income Tax Convention signed at Helsinki on September 21, 1989, together with the Protocol signed at Helsinki on May 31, 2006 — last verified October 2026. The protocol entered into force on December 28, 2007, and its withholding rules apply from February 1, 2008. It replaced Article 10 (Dividends) and Article 16 (Limitation on Benefits), added Article 11(6), and omitted Article 12(2). Articles 7, 11(1), 12(1), and 14 were not replaced. The 1989 PDF still prints the deleted 5% royalty paragraph. Do not use that PDF alone for dividends, royalties, or Limitation on Benefits.
AI-generated imageA Finnish Oy invoices a US client, and accounts payable asks for a W-8BEN-E before they pay. Where the work is done decides what goes in Part III. Services performed in Finland are foreign-source income: there is no US withholding on them and no treaty claim to make, so Part III (Lines 14a, 14b and 15) stays blank. Services your staff perform in the United States are US-source; with no permanent establishment there, Article 7(1) exempts them at 0%. The treaty says the enterprise "carries or carried" on business through a permanent establishment. After the 2006 Protocol, every royalty category cites Article 12(1) at 0%, including patents, trademarks, know-how, software, and films; the 1989 5% paragraph was deleted. When the company does claim the treaty, Line 14b certifies a Limitation on Benefits test of the protocol's Article 16. For an operating Oy that is usually Active trade or business, Article 16(4)(a). "No LOB article in treaty" is the wrong box. This is not the US-Sweden treaty and not the US-Denmark treaty.
This guide uses the current IRS line numbers (Rev. October 2021) for the sample case: Suomi Oy, Active NFFE, whose consultants work on site in the United States, with no US permanent establishment, claiming Article 7(1) at 0% on those service fees. It also covers the protocol dividend split (5% / 15% by voting stock, and a narrow 0% under Article 10(3)), dividends from a US RIC or REIT, ordinary interest at 0% under Article 11(1), and why contingent interest under Article 11(6)(a), the paragraph Protocol Article IV added to Article 11, is not that 0% rate.
If you are not incorporated — a Toiminimi working under your own HETU — you use Form W-8BEN, not this form: start the W-8BEN wizard. Work you do in Finland is foreign-source, so Part II of Form W-8BEN (Lines 9 and 10) stays blank. Pay for personal services you perform in the United States is not claimed on Form W-8BEN at all: the IRS takes that claim on Form 8233. This page is for incorporated businesses.
Or skip the reading and start the W-8BEN-E wizard — guided questions, a suggested treaty article and rate, and a signature-ready PDF for $30.
Blank form or already filled in?
You can download the official blank form from the IRS and complete it yourself, or get the same file filled from your answers. Read the 1989 convention and the 2006 protocol together. The protocol is the operative text for dividends, the deleted royalty paragraph, the new interest exception, and Limitation on Benefits.
- Blank official W-8BEN-E (IRS, free): Download W-8BEN-E as a PDF directly from the IRS — for an Oy or an Oyj.
- Blank official W-8BEN (IRS, free): Download W-8BEN as a PDF directly from the IRS — for a Toiminimi.
- 1989 Convention: Income Tax Treaty PDF on IRS.gov — Articles 7, 11(1), 12(1), and unnumbered 14. Do not use this PDF alone for Article 10, Article 12(2), or Article 16. Those parts are stale.
- 2006 Protocol: Protocol PDF on IRS.gov — this replaced Article 10 and Article 16, added Article 11(6), and deleted the 5% royalty paragraph.
- IRS treaty documents page: Finland tax treaty documents. The operative withholding text for the protocol changes is the 2006 protocol PDF, in force from December 28, 2007.
- Already filled in (5–10 minutes): W-8BEN-E for Finnish companies ($30) or W-8BEN for an individual ($5) — treaty article and rate suggested automatically, ready to sign as a PDF.
Which Finnish company type are you actually dealing with?
The Chapter 3 box depends on the legal form, not on revenue:
- Julkinen osakeyhtiö / Publikt aktiebolag (Oyj/Abp) Always a Corporation for US tax purposes. 26 CFR 301.7701-2(b)(8)(i) lists "Finland, Julkinen Osakeyhtio/Publikt Aktiebolag" as a per se corporation. There is no Form 8832 election.
- Osakeyhtiö (Oy) The usual startup and small-company form, and the example name in the wizard is Suomi Oy. It is not on the per se list. Members have limited liability, so it defaults to Corporation, but it can elect a different US classification on Form 8832. A single-member Oy is not disregarded by default.
- Toiminimi An individual registration, not a separate legal entity. The person files Form W-8BEN, not this form. Work done in Finland needs no treaty claim, so Part II of Form W-8BEN (Lines 9 and 10) stays blank; pay for services performed in the United States goes on Form 8233.
- Ay and Ky An avoin yhtiö (Ay) or kommandiittiyhtiö (Ky) is a partnership-style form, not a Corporation by default. Do not check Corporation only because the business has more than one owner.
An Oy that has not filed Form 8832 checks Corporation on Line 4. An Oyj checks Corporation too, and it cannot elect out.
Do not put a personal HETU on the company form. A HETU is 11 characters (the valid wizard example for a person is 010190-123M; the check character of 010190123 is M, not A). The company identifier is the Y-tunnus: 7 digits, a hyphen, and a check digit. The sample company uses 1234567-1. The check digit of 1234567 is 1, not 8.
Who actually needs to fill in W-8BEN-E?
Any Finnish Oy or Oyj that receives payments from a US business and wants to document non-US status. Common situations:
- Consulting or software invoices A US client asks for the form before paying service fees. Work done in Finland needs no treaty claim; Part III stays blank.
- Royalties or a patent or know-how license The payer needs a treaty claim before applying 0% instead of 30%. The old 5% paragraph is not the rate.
- A broker or platform Finnish investors meet Form W-8BEN at Nordnet Finland, Nordea, OP, and similar brokers. Those platforms collect the form. They do not calculate the treaty rate for you. Form W-8BEN-E is the company form, for an Oy or Oyj billing US clients, not for a personal brokerage account.
What happens without a valid form?
Without a W-8BEN-E, the US payer generally withholds 30% of the gross amount of US-source FDAP income: royalties, dividends, interest, and services performed in the United States. Services performed in Finland are foreign-source and carry no chapter 3 withholding; without a form the payer may still hold the payment. With the form, services performed in the United States with no US permanent establishment can be 0% under Article 7(1). Ordinary interest is 0% under Article 11(1). A patent, trademark, know-how, software, or film royalty is 0% under Article 12(1). Ordinary dividends are 15% under Protocol Article 10(2)(b) unless a reduced-rate test is met.
The form stays with the US payer. It is not filed with the Finnish Tax Administration or the IRS. Finnish tax on the same income is a separate question.
W-8BEN-E line by line: what a Finnish Oy actually enters
Official IRS line numbers for an operating Oy, Active NFFE. An Oy paid for work done in Finland leaves Part III (Lines 14a, 14b and 15) blank. The rows for 14a, 14b and 15 below, and the sample, show the other case: the company claims the treaty, here Article 7(1) for services its staff perform in the United States with no US permanent establishment. An Oyj uses the same lines except that it cannot elect out of Corporation. A Toiminimi does not use this form.
| Line | What you enter |
|---|---|
| Line 1 | The company's legal name, for example Suomi Oy. |
| Line 2 | Country of incorporation: Finland. |
| Line 3 | Leave blank unless a disregarded entity is receiving the payment for its owner. |
| Line 4 | Corporation for an Oyj (always) or an Oy (the default, unless Form 8832 says otherwise). The hybrid follow-up is usually No. |
| Line 5 | Chapter 4 (FATCA) status. An operating company with no financial business is usually Active NFFE. |
| Line 6 | The registered office. The sample uses Mannerheimintie 1 A 2, Helsinki, FI-00100. |
| Line 7 | Only if the mailing address differs from Line 6. |
| Line 8 | Usually blank. A US TIN is required only in the cases the payer names. |
| Line 9a | Leave blank. A GIIN is for financial institutions. |
| Line 9b | The company's Y-tunnus, 7 digits, a hyphen, and a check digit, as the foreign TIN. The sample is 1234567-1. Do not enter a personal HETU. |
| Line 9c | Not checked for a registered company that has a Y-tunnus. |
| Line 10 | Usually blank unless the payer asks for a reference number. |
| Part II (Lines 11–13) | Not completed for an ordinary Oy. Part II is for disregarded entities and branches. |
| Line 14a | Only when the company claims the treaty: country of residence for treaty purposes, Finland. Blank for services performed in Finland. |
| Line 14b | Only when the company claims the treaty: the Limitation on Benefits test it meets under Article 16 of the 2006 Protocol. An operating Oy usually certifies Active trade or business under Article 16(4)(a). A listed Oyj may meet the publicly traded test of 16(2)(c)(i). The subsidiary test of 16(2)(c)(ii) needs at least 50% of the voting power and value (and of any disproportionate class) owned, directly or indirectly, by five or fewer Finnish or US companies that pass the 16(2)(c)(i) test, each intermediate owner resident in Finland or the United States. "No LOB article in treaty" is the wrong box. |
| Line 14c | Not normally checked. |
| Line 15 | Only when the company claims the treaty. For services performed in the United States with no US permanent establishment: Article 7(1), 0%, Services. For a patent, trademark, know-how, software, or film royalty: Article 12(1), 0%, Royalties. Cite Article 12(1), not Article 12(2). After the protocol, Article 12(2) only defines royalties. Equipment rent, in the company's trade or not, with no US permanent establishment and no activity in the United States, is Article 7(1), 0%, not Article 12 and not Article 21(1); with activity in the United States the claim stays blank. Film rental is a royalty under Article 12(1), not Article 7. |
| Line 39 (Part XXV) | Check the Active NFFE certification if Line 5 is Active NFFE. |
| Part XXX | Signature, printed name, and date. The sample is signed by Juha Virtanen. |
Line numbers match Rev. October 2021. If the IRS issues a new revision, follow the numbering on the PDF you sign.
The guided W-8BEN-E wizard fills these lines from your answers, including the article and rate on Line 15.
Oyj, Oy, and a Toiminimi are not the same box
The per se list names only the Julkinen osakeyhtiö / Publikt aktiebolag. An Oy is still a Corporation by default, and a Toiminimi is not a company at all.
| Point | What it means |
|---|---|
| Oyj / Abp | Per se corporation under 26 CFR 301.7701-2(b)(8)(i), listed as "Finland, Julkinen Osakeyhtio/Publikt Aktiebolag". Check Corporation. Form 8832 cannot change that. |
| Osakeyhtiö (Oy) | Not on the per se list. Limited liability means the default is still Corporation. A different US classification requires a filed Form 8832. |
| Toiminimi | Individual registration. File Form W-8BEN. Work done in Finland needs no treaty claim, so Part II (Lines 9 and 10) stays blank, and pay for services performed in the United States goes on Form 8233, not Form W-8BEN. |
| Y-tunnus vs HETU | Line 9b on this form is the Y-tunnus 1234567-1. The HETU 010190-123M belongs on Form W-8BEN. |
Use the default that matches the company you actually registered, unless a Form 8832 election is already on file.
What a completed W-8BEN-E looks like for a Finnish Oy
An anonymised example: Suomi Oy, Active NFFE, whose consultants perform services on site in the United States with no US permanent establishment, claiming Article 7(1) at 0% on those fees and certifying Active trade or business on Line 14b. For work done in Finland, Part III would stay blank. This is the PDF the wizard produces from the same inputs.
For illustration only. The company name, address, signer, and Y-tunnus are fictional. Example: Suomi Oy, Helsinki, Y-tunnus 1234567-1, Chapter 3 Corporation, FATCA Active NFFE, services performed in the United States with no US permanent establishment, US-Finland treaty Article 7(1) (Business Profits) 0%, Limitation on Benefits Active trade or business.
Treaty rates by income type
These rates come from the 1989 Convention plus the 2006 Protocol. Dividends, the royalty deletion, the new interest exception, and Limitation on Benefits follow the protocol. Business profits, ordinary interest, the royalty rate paragraph, and independent personal services follow the 1989 text.
| Income type | Article | Rate |
|---|---|---|
| Services performed in Finland (foreign-source, no US withholding) | None: Part III blank | — |
| Services performed in the United States (Business Profits, no current or former US permanent establishment) | Article 7(1) | 0% |
| Equipment lease, no US permanent establishment and no activity in the United States (tangible personal property; Article 7(7), not a royalty and not a film) | Article 7(1) | 0% |
| Dividends, company owning directly at least 10% of the voting stock | Article 10(2)(a) | 5% |
| Dividends, general rate (under 10% of the voting stock, or any holder who does not meet 10(2)(a)) | Article 10(2)(b) | 15% |
| Dividends, company that has owned 80% or more of the voting power for 12 months and meets one of clauses (i)–(iv) of 10(3)(a) | Article 10(3)(a) | 0% |
| Dividends, Finnish pension fund as defined in Article 16(7)(j), dividends not derived from its business or through an associated enterprise | Article 10(3)(b) | 0% |
| Dividends from a US REIT outside the three tests of Article 10(4)(a) | None: claim blank | 30% |
| Interest, ordinary cash loan (not determined by the debtor's or a related person's receipts, sales, income, profits or other cash flow, property value, or a dividend or similar payment to a related person; not a REMIC excess inclusion) | Article 11(1) | 0% |
| Contingent interest: interest determined with reference to receipts, sales, income, profits or other cash flow of the debtor or a related person, to any change in the value of any property of the debtor or a related person, or to any dividend, partnership distribution or similar payment made by the debtor to a related person (Article 11(6)(a), added by Protocol Article IV; capped at the Article 10(2)(b) rate) | Article 11(6)(a) | 15% |
| Royalties, including patents, trademarks, know-how, software, and films (operative Article 12(2) is the definition) | Article 12(1) | 0% |
| Other income not dealt with in the earlier articles | Article 21(1) | 0% |
On Line 15, cite Article 12(1) at 0% for a patent, a trademark, know-how, a software license, and a film royalty. In the 1989 PDF, Article 12(2) overrode Article 12(1) with a 5% source tax for patents, trademarks, designs, secret processes, and industrial, commercial, or scientific information. Copyrights and films were already at 0% under Article 12(1). Protocol Article V omitted paragraph 2 and renumbered the old definition so that the operative Article 12(2) is the definition, not a 5% rate. Do not cite Article 12(2) on Line 15, and do not cite 5%. The raw 1989 PDF is stale on that point. Unlike Austria, Finland has no remaining film rate. Unlike Denmark, the dividend test in Article 10(2)(a) is 10% of the voting stock, not 10% of the share capital. Equipment rental is not a royalty. Article 7(7) defines profits as income derived from any trade or business, including the rental of tangible personal property, and it excludes film rental. The Treasury technical explanation reads that for any lessor: the rent is taxed in the United States only if it is attributable to a US permanent establishment. So equipment rent, in the company's trade or not, with no US permanent establishment and no activity in the United States, cites Article 7(1) at 0%; with activity in the United States the claim stays blank. It is not other income under Article 21(1). Film rental cites Article 12(1) at 0%. Ordinary interest cites Article 11(1) at 0%. That 0% rate was already in the 1989 text. Article 11(2) is the definition. Protocol Article IV added paragraph 6 to Article 11, not paragraph 5. Article 11(6)(a) caps at the Article 10(2)(b) rate of 15% the interest determined with reference to receipts, sales, income, profits or other cash flow of the debtor or a related person, to any change in the value of any property of the debtor or a related person, or to any dividend, partnership distribution or similar payment made by the debtor to a related person, and Article 11(6)(b) lets each State tax a REMIC excess inclusion under its domestic law. Do not cite Article 11(6) for an ordinary cash loan, do not cite Article 11(5) as the contingent-interest rule, and do not describe interest as having no exceptions. The 5% dividend rate is Protocol Article 10(2)(a). The general rate is 10(2)(b) at 15%. Protocol Article 10(3)(a) is 0% only for a company that has owned, directly or through residents of either State, 80% or more of the voting power for the 12 months ending on the date entitlement to the dividend is determined, and that also meets one of four clauses: the publicly traded or subsidiary test of Article 16(2)(c)(i) or (ii); the ownership and base-erosion test of 16(2)(f) together with the active trade or business test of 16(4) for these dividends; the derivative benefits test of 16(3); or a competent-authority determination under 16(6). Article 10(3)(b) is 0% for a Finnish pension fund as Article 16(7)(j) defines it, when the dividends are not derived from its business or through an associated enterprise. Do not default an ordinary Oy to 0%. Article 10(4) takes 10(2)(a) and 10(3)(a) away from a dividend paid by a US RIC or REIT; a REIT dividend keeps 10(2)(b) and 10(3)(b) only for an individual or pension fund holding not more than 10%, an owner of not more than 5% of a publicly traded class, or an owner of not more than 10% of a diversified REIT. The 1989 Article 10(3) defined dividends. It was not a 0% rate. Because the protocol entered into force on December 28, 2007, Article 10(3) can apply to income derived on or after January 1, 2007, and other protocol withholding starts on February 1, 2008. Do not cite the branch-tax paragraphs for a company with no US permanent establishment.
A Toiminimi: Part II of Form W-8BEN (Lines 9 and 10) blank for work in Finland; Article 14, not Article 7 and not Article 14(1), on Form 8233 for work in the United States
Article 14 is one unnumbered paragraph. Income of an individual resident from personal services in an independent capacity is taxable only in the residence state. It may also be taxed in the other state to the extent that the services are or were performed in that other state and the income is attributable to a fixed base regularly available to the individual there. Both conditions are required, and there is no day-count test in Article 14. That article is still not a Form W-8BEN claim. Work a Toiminimi does in Finland is foreign-source income, so Part II of Form W-8BEN (Lines 9 and 10) stays blank. Pay for services performed in the United States is claimed on Form 8233, as the Form W-8BEN instructions say, citing Article 14 rather than Article 14(1). An Oy does not cite Article 14. The day-count test for employment wages is in Article 15, not here.
A blog post, or the finished PDF?
Generic guides often still quote the 1989 5% royalty paragraph, or they copy Denmark's share-capital dividend test onto Finland. The wizard asks those questions once and returns the PDF.
| Point | This page | A generic guide |
|---|---|---|
| Article numbers | Article 7(1) for services performed in the United States with no US permanent establishment, and for equipment leases with no US permanent establishment and no US activity, Article 12(1) for patents, know-how, software, and films. Nothing in Part III for work done in Finland. | Often still cites the deleted Article 12(2) at 5%, or copies Austria's 10% film rate. |
| Line 14b | Only with a treaty claim: usually Active trade or business under Protocol Article 16(4)(a). | Sometimes uses the omitted 1989 Article 16, or says there is no LOB article. |
| Finished form | Sample PDF for Suomi Oy, for services performed on site in the United States with no US permanent establishment (work done in Finland leaves Part III, Lines 14a, 14b and 15, blank), plus a wizard that fills yours. | A checklist you still have to type into the IRS PDF. |
Start the wizard and download the filled PDF.
Frequently asked questions about W-8BEN-E for Finnish companies
Direct answers for an Oy or Oyj billing US clients or receiving US investment income.
Which article do I cite for consulting fees?
None, if the work is done in Finland: those fees are foreign-source, there is no US withholding, and Part III stays blank. For services the Oy's staff perform in the United States, cite Article 7(1) at 0% if the Oy has no current and no former permanent establishment there. The text says "carries or carried". Do not cite Article 12 or Article 14 for the company.
I am a Toiminimi, not an Oy. Which form and which article?
Form W-8BEN. Work you do in Finland is foreign-source, so Part II (Lines 9 and 10) stays blank. Pay for services you perform in the United States is claimed on Form 8233, not Form W-8BEN; the treaty article is Article 14 (not Article 14(1)), and the United States may tax that pay only to the extent the services are or were performed there and the income is attributable to a fixed base regularly available to you there. Do not cite Article 7 for those services. Equipment you rent out is different: Article 7(7) counts the rent as profits, so with no US permanent establishment and no activity in the United States, Line 10 of Form W-8BEN is Article 7(1) at 0%, the same as for an Oy.
Is a patent or know-how license still 5%?
No. The 1989 Article 12(2) 5% rate for patents, trademarks, and know-how was deleted by Protocol Article V. Cite Article 12(1) at 0%. The operative Article 12(2) is the definition, not a rate. The 1989 PDF still prints the old 5% paragraph. Do not use it.
Is a film royalty 0%, or is it Austria's 10%?
Article 12(1) at 0%. Films were already in the 0% copyright category before the protocol. Finland has no remaining film rate. Do not copy Austria Article 12(2).
Is equipment rental a royalty?
No. Article 7(7) counts the rental of tangible personal property as profits, and it excludes film rental. The Treasury technical explanation reads that for any lessor: the rent is taxed in the United States only if it is attributable to a US permanent establishment. An Oy or a Toiminimi (on Form W-8BEN) leasing equipment, with no US permanent establishment and no activity in the United States, cites Article 7(1) at 0%, not Article 12 and not Article 21. With activity in the United States, leave the claim blank. A film license stays a royalty under Article 12(1).
Is interest really 0% with no exceptions?
Ordinary interest is Article 11(1) at 0%, and that rate was already in the 1989 text. That is not every interest payment. Article 11(6)(a), which Protocol Article IV added, lets the United States tax at up to 15%, the Article 10(2)(b) rate, interest determined with reference to receipts, sales, income, profits or other cash flow of the debtor or a related person, to any change in the value of any property of the debtor or a related person, or to any dividend, partnership distribution or similar payment made by the debtor to a related person. Under Article 11(6)(b) each State may tax a REMIC excess inclusion under its domestic law. Do not cite Article 11(6) for an ordinary cash loan, and do not use Denmark's paragraph 5.
What do I check on Line 14b?
Only fill Line 14b when the company claims the treaty. An operating Oy usually checks Active trade or business, which is Article 16(4)(a) of the 2006 Protocol. A listed Oyj may meet the publicly traded test of 16(2)(c)(i); the subsidiary test of 16(2)(c)(ii) needs at least 50% of the voting power and value (and of any disproportionate class) owned, directly or indirectly, by five or fewer Finnish or US companies that pass the 16(2)(c)(i) test, each intermediate owner resident in Finland or the United States; the derivative benefits test of 16(3) needs at least 95% of the voting power and value (and at least 50% of any disproportionate class) owned by seven or fewer equivalent beneficiaries, and less than 50% of gross income paid as deductible payments to persons who are not equivalent beneficiaries. The 1989 Article 16 was omitted. "No LOB article in treaty" does not apply to Finland. Article 16(2)(f) is the ownership-and-base-erosion test, not the default for an operating Oy.
Why is the dividend rate 15%, not 0% or Denmark's share-capital test?
Protocol Article 10(2)(b) is 15% for a holder who does not own directly at least 10% of the voting stock. 10(2)(a) is 5% when a company owns directly at least 10% of the voting stock. That is voting stock, not Denmark's share-capital test. 10(3)(a) is 0% only when a company has owned 80% or more of the voting power for 12 months and also meets one of the Article 16 tests named in clauses (i)–(iv) of that paragraph; 10(3)(b) is 0% for a Finnish pension fund as defined in Article 16(7)(j). The 1989 Article 10(3) defined dividends and is no longer the text.
Oyj or Oy on Line 4?
Both check Corporation unless the Oy has filed Form 8832. Only "Finland, Julkinen Osakeyhtio/Publikt Aktiebolag" is on the per se list. The Oy is a Corporation by default because of limited liability.
HETU or Y-tunnus on Line 9b?
The company's Y-tunnus. The sample uses 1234567-1. The check digit of 1234567 is 1, not 8. A HETU belongs on Form W-8BEN. The valid personal example is 010190-123M. The check character is M, not A.
Related guides
More on the form itself:
- Company form: W-8BEN-E wizard for an Oy or Oyj
- Not a company: W-8BEN wizard for an individual ($5)
- Chapter 3 status: Chapter 3 status guide
Common mistakes to avoid
- Writing Article 7(1) on Line 15 for work done in Finland, which leaves Part III blank Services performed in Finland are foreign-source. There is no US withholding to reduce, so Part III stays blank.
- Putting a HETU on the company form Line 9b is the Y-tunnus 1234567-1. A HETU such as 010190-123M belongs on Form W-8BEN.
- Citing the deleted 5% royalty paragraph The rate is Article 12(1) at 0%, including patents, trademarks, know-how, software, and films. The operative Article 12(2) only defines royalties.
- Saying the change happened in 2010 The protocol entered into force on December 28, 2007. US withholding under it starts on February 1, 2008.
- Copying Austria's film rate or Denmark's share-capital test Finland has no film rate. Article 10(2)(a) looks at voting stock, not share capital. Contingent interest is Article 11(6)(a), not Denmark's Article 11(5). Article 11(6)(a) covers interest determined by the debtor's or a related person's receipts, sales, income, profits or other cash flow, a change in the value of any property of the debtor or a related person, or a dividend, partnership distribution or similar payment to a related person.
- Calling every interest payment 0% Ordinary interest is Article 11(1) at 0%. Interest determined by the debtor's or a related person's receipts, sales, income, profits or other cash flow, a change in the value of any property of the debtor or a related person, or a dividend, partnership distribution or similar payment to a related person is Article 11(6)(a) at 15%.
- Using the 1989 dividend article The 2006 Protocol replaced Article 10. The old Article 10(3) defined dividends. It was not the 0% rate.
- Checking No LOB article Protocol Article 16 is a real Limitation on Benefits article. An operating Oy that claims the treaty usually certifies Active trade or business under 16(4)(a).
- Citing Article 14(1) Article 14 has no numbered paragraphs, and only an individual can use it. It is no Form W-8BEN claim: a Toiminimi's work in Finland leaves Part II (Lines 9 and 10) blank, and pay for services the Toiminimi performs in the United States goes on Form 8233, citing Article 14. An Oy does not cite Article 14. Do not copy Denmark's Article 14(1).
A note on Finnish tax
This page is about US withholding. It does not determine how Finland taxes the same income, and it does not calculate Finnish tax on US dividends.
Company tax, VAT, and whether a dividend meets the 80% voting-power test are questions for a Finnish accountant. The W-8BEN-E only tells the US payer which treaty rate to apply at source.
Ready to fill the form with the Finnish article numbers?
The wizard asks the same questions as this page and suggests the article and rate on Line 15.