Giving through share dividends, tax-free
As a private individual and owner of shares you can transfer the rights to future share dividends on a tax-free basis to KTH.
This applies to shares of stock market-listed companies as well as unlisted companies and private partnerships. You are free to choose a specific area you would like to give to.
The value of the donation you make to support KTH research in this way is larger than the amount you would have received had you been the beneficiary of the dividend, as tax on dividends issued by stock market-listed companies in Sweden is 30%.
Legal entities (companies etc) may not transfer the rights to dividends on a tax-free basis.
To follow is some practical information about giving via share dividends. Please contact us if you would like more information about how you can support KTH.
Decide on which share or shares you would like to donate the dividend and how much of the dividend you would like to donate. Your bank in Sweden can help you with this by opening a VP account on your behalf and making the beneficiary of the dividend KTH.
It is important that you state KTH as the beneficiary of the share dividend at the latest one week before the record date.
If you have a VP account with a Swedish bank
To be able to donate a dividend you must state KTH as the beneficiary. Download the document “Notification of gift of dividend”, complete the information required and send it to your bank.
In the form above, or in the Deed of Gift below you can specify the field of research you would like to give to, or that you would like to give to the KTH Opportunities Fund.
Clients of Aktieinvest (Aktiespararna) and Nordnet can notify their banks of this via these web sites.
If you have a safe custody account with a Swedish bank or securities broker
Contact your bank or securities broker about what applies in your case.
If you wish to donate the right to a dividend in shares of an unlisted company
The company issuing the share dividend can issue dividend coupons. A coupon gives the right to a share dividend for the current financial period. You can ask your bank or securities broker for more information.
The Swedish Tax Authority is provided with information about your gift by your bank. In your Swedish tax return you can provide information about your gift under “other information”. You should save all records of the dividend transfer.
If you are a partner of a company formed as a partnership and report the dividend on form K 10, the divided being donated has to be accounted for as part of the accumulated dividend for the next financial year. This means that the corresponding dividend, one year later will be taxed at a low(er) rate.
Questions & Answers
How will KTH be notified of my gift?
If your shares are held in a VP account with a Swedish bank KTH is automatically notified of your gift. If your shares are held in a safe custody account with a Swedish bank or securities broker it may mean that your gift remains anonymous. Please let us know if you have donated this way so that we have the possibility of showing our appreciation. You can find our contact information further down this page.
When a dividend is gifted on shares of an unlisted company, the details of the person making the gift are contained in the deed of gift.
How are my rights as a shareholder affected?
Your holding of shares in the company is not affected as you are not donating shares.
Is it a one-off donation?
Because your gift is recurring it only ceases when you sell your shareholding or you notify your bank that you wish to discontinue the donation. If you have a VP account you can download the form ‘Notification of gift of dividend’ and tick the box ‘Unregister’. If you have a safe custody account please contact your bank.
For more information please contact Emma Jones on: +46 (8) 790 87 74 or email: email@example.com .