Finland implements changes to Parent-Subsidiary Directive

Under the Finnish Law implementing the provisions of the EC Parent-Subsidiary 2003/123/EC, outbound dividends are exempt from withholding tax if the recipient is an EU company referred to in Art. 2 of the Directive and holds directly at least 20% of the capital of the paying company. Although under Directive 2003/123/EC amending the Parent-Subsidiary Directive, the minimum degree of ownership should be reduced to 15% with effect from 1 January 2007, the Law has not yet been changed accord…