Germany: German tax vouchers, the OGAW-IV UCITS IV Directive and the German Budget 2013
Further to our Announcements A11152, dated 14 October 2011, and A12020, dated 1 February 2012, regarding the implementation of OGAW-IV Umsetzungsgesetz (UCITS IV Directive), we hereby provide information about the following:
Requirements for tax reclaim processing
In order to apply for standard refund of withholding tax, the following documents must be submitted to Clearstream Banking by the prescribed deadlines:
Please refer to the details in the Market Taxation Guide – Germany.
Tax vouchers are only created at the request of the customer. Before making such request, the customer must submit a signed One-Time Customer Declaration (see the attached zip file).
Clearstream Banking may only issue tax vouchers if there is sufficient existing “voucher contingent” per event for the customer. Accordingly, a continuous check of the voucher contingent is required at customer single-account level. The total amount of issued tax vouchers and outstanding requests must not exceed the total amount of taxes paid. If the voucher contingent is exhausted, no further vouchers will be created and every subsequent open application will be answered with a rejection letter (until the voucher contingent is renewed).
Application for a tax voucher
The Clearstream Banking customer can file an application for a single tax voucher (“Einzelsteuerbescheinigung”) with respect either to their own assets or to those of their client.
An application for a German tax voucher with respect to a Clearstream Banking customer’s assets must normally be made via electronic upload of a data file in the name of beneficial owner/end-investor of the capital income (see Upload BO List on the Clearstream website). Only on an exceptional basis will Clearstream Banking accept an application in writing via Antragsformular auf Bescheinigung der Kapitalertragsteuer (see the attached zip file).
Tax vouchers are issued after the completion of the market claims process (25 business days after payment date). The fee for the issuance of a German tax voucher s set out in the Clearstream Banking Fee Schedule in effect at the relevant time.
If the tax amount to be certified in the tax voucher(s) requested by a Clearstream Banking customer (on their own behalf or on behalf of their client(s)) exceeds the amount of the tax actually deducted for an event, Clearstream Banking will reject the application for a tax voucher.
Furthermore, the current Recovery Directive Implementation Act (Beitreibungsrichtlinie-Umsetzungsgesetz ("BeitrRLUmsG")2) provides for an accumulative tax voucher (“Sammelsteuerbescheinigung“) used in the context of the refund, by the domestic credit institution and ultimate custodian, of withholding tax that has been retained twice (if given). The application for such a voucher may only be filed for shares that were acquired “cum-dividend“ and delivered “cum-dividend“ (that is, so-called “cum-cum-constellation”; “cum-ex-trades“ are not covered).
Clearstream Banking treats an accumulative tax voucher like a single tax voucher. The application for an accumulative tax voucher suspends the issuance of a single tax voucher (including the forwarding of the application for a single tax voucher) for taxes retained on the same capital income. CBF will issue accumulative tax vouchers according to the legal requirements and will mark each accumulative tax voucher as such.
The Clearstream Banking customer must earmark the application for a German tax voucher as one of the following:
In letter IV C 1 - S 2401/08/10001:007 (DOK 2011/1041094) from 29 December 2011, the German Ministry of Finance (MoF) published the final draft of the accumulative tax voucher, requiring that it show the following:
Note: If the Clearstream Banking customer does not specify the type of request as for a single or accumulative tax voucher with regard to business capital or to personal assets, then Clearstream Banking must assume that application is made for a single tax voucher for an individual person with regard to personal assets/Privatvermögen based on Einkommensteuergesetz (EStG).
In the case of an application for an accumulative tax voucher, Clearstream Banking assumes that the day of the data file transfer or date of issuance of the application form is the date of application of the German depository that asked for the accumulative tax voucher.
Draft of budget 2013 (JStG 2013)
The MoF will extend, with the Jahressteuergesetz 2013, the type of instruments and will include into the UCITS-IV regulation convertible bonds, certificates and profit participating certificates.
The MoF plans the possibility to use German tax vouchers on “manufactured dividends” in paying the taxes not withheld.
After final approval by the German Parliament (Bundestag) and its Upper House (Bundesrat), Clearstream Banking will inform customers about processing on "manufactured dividends“. The section "Bescheinigung und Erstattung der Kapitalertragsteuer bei Leerverkäufen im Ausland“ from the CBF document "Bescheinigung und Erstattung/Entlastung von einbehaltener Kapitalertragsteuer und des Solidaritätszuschlags“, dated 23 November 2011, will be reactivated and subsequently updated.
Taxation of German growth funds / accumulation funds
The reinvestment of a German growth fund / accumulation fund, which is according to the height of the revenue that the fund achieved during the business year, is liable to tax according to the German Income Tax Act (EStG).
The responsibility for taxation has changed during the years and can be separated into the following relevant tax regimes:
The following example compares the two tax regimes to show the calculation differences. It also shows that a foreign customer has the same value of the growth fund independent of the effective tax regime.
a. The displayed KESt is not correct: normally, the 25% tax rate is reduced to 24.45% because the German Income Tax Act excludes the church tax as a special expense.
Calculation done by the last German domestic depository bank
The following section describes, referring to WSS screenshots, the calculation that is done by the last German domestic depository bank (auszahlende Stelle).
The tax calculation is done on the following taxable bases (Bemessungsgrundlagen):
Example for calculation of tax:
Calculation for domestic customer in CBF:
Holding * Full tax liquidity = Credit:
100 * 2.799 = 279.90
Calculation for foreign customer in Clearstream (CBF and CBL):
Holding * (full tax liquidity-(sum of taxable bases/100*26.375) = Credit:
100 * (2.799 - ((2+1+3+4)/100*26.375) = 16.15
These taxable bases can be found in WSS-WM (see the attached zip file).
For further information, please contact the Clearstream Banking Tax Help Desk on:
or Clearstream Banking Customer Service or your Relationship Officer.
Content of attached zip file
1. Unless explicitly stated otherwise, Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL). However, the tax duties under the UCITS-IV transformation act refer primarily to Clearstream Banking AG, it being registered in Frankfurt am Main.
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