Nokia 2004 Annual Report Download - page 113

Finnish Capital Taxes
Under the Treaty, the holding of ADSs or the underlying shares by US Holders generally will not
subject a US Holder to Finnish tax on net capital.
Finnish Transfer Tax
Transfers of shares will be, and transfers of ADSs may be, subject to the Finnish transfer tax only
when one of the parties to the transfer is subject to Finnish taxation under the Finnish Income
Tax Act by virtue of being a resident of Finland or a Finnish branch of a non-Finnish credit
institution. In case the Finnish Transfer Tax Act is applicable, transfer tax, however, would not be
payable on stock exchange transfers. Otherwise, the transfer tax would be payable at the rate of
1.6% of the transfer value of the security traded.
Finnish Inheritance and Gift Taxes
A transfer of an underlying share by gift or by reason of the death of a US Holder and the transfer
of an ADS are not subject to Finnish gift or inheritance tax provided that none of the deceased
person, the donor, the beneficiary of the deceased person or the recipient of the gift is resident in
Finland.
Non-Residents of the United States
Beneficial owners of ADSs that are not US Holders will not be subject to US federal income tax on
dividends received with respect to ADSs unless this dividend income is effectively connected with
the conduct of a trade or business within the United States. Similarly, non-US Holders generally
will not be subject to US federal income tax on the gain realized on the sale or other disposition of
ADSs, unless (a) the gain is effectively connected with the conduct of a trade or business in the
United States or (b) in the case of an individual, that individual is present in the United States for
183 days or more in the taxable year of the disposition and other conditions are met.
US Information Reporting and Backup Withholding
Dividend payments with respect to shares or ADSs and proceeds from the sale or other disposition
of shares or ADSs may be subject to information reporting to the Internal Revenue Service and
possible US backup withholding at the current rate of 28%. Backup withholding will not apply to a
Holder, however, if the Holder furnishes a correct taxpayer identification number or certificate of
foreign status and makes any other required certification or if it is a recipient otherwise exempt
from backup withholding (such as a corporation). Any US person required to establish its exempt
status generally must furnish a duly completed Internal Revenue Service Form W-9 (Request for
Taxpayer Identification Number and Certification). Non-US Holders generally are not subject to US
information reporting or backup withholding. However, such Holders may be required to provide
certification of non-US status (generally on IRS Form W-8BEN) in connection with payments
received in the United States or through certain US-related financial intermediaries. Backup
withholding is not an additional tax. Amounts withheld as backup withholding may be credited
against a Holder’s US federal income tax liability, and the Holder may obtain a refund of any
excess amounts withheld under the backup withholding rules by filing the appropriate claim for
refund with the Internal Revenue Service and furnishing any required information.
10.F Dividends and Paying Agents
Not applicable.
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