When individuals and companies based in other countries pay taxes on dividends from Faroese companies in the Faroe Islands and their home country, they may apply for a dividend tax refund from the Faroese Tax and Customs Authorities (TAKS) if a valid double taxation treaty is in place with that country.

Shareholders from the Nordic countries are eligible for a dividend tax refund in accordance with the Nordic tax treaty for the avoidance of double taxation. The Faroe Islands also have double taxation treaties with Britain, Switzerland and India. Shareholders residing in these countries are eligible for a dividend tax refund in accordance with the rates specified in these respective treaties.

A list of countries that have entered into a double taxation treaty with the Faroe Islands with regards to dividend tax can be seen at: http://www.taks.fo/en/business/dividend-tax-refunds/terms-and-application/

To claim the refund, shareholders are required to fill out a form and send it by post or email to TAKS. The form is available at: http://www.taks.fo/en/business/dividend-tax-refunds/

Before sending the form to TAKS, shareholders need documentation from the relevant tax authority to certify that they are covered by the double taxation treaty between the residing country and the Faroe Islands.

For assistance in filling out the form, reach out to TAKS by phone (+298) 352600 or by email.