Canada: Amended NR7-R instructions and implementation of minimum tax reclaim amount - Update
Note: This announcement, originally published on 12 October 2015, has been updated to clarify that the minimum reclaim amount of CAD 350,00 is implemented by our depository RBC Investor & Treasury Services. Changes have been highlighted.
Clearstream Banking1 would like to inform customers that effective
the Canadian Revenue Agency (CRA) has issued amended instructions in regards to the reclaim form NR7-R and, effective
1 January 2016
a minimum reclaim amount of CAD 350,00 will be implemented by our depository RBC Investor & Treasury Services in regards to tax reclaims for dividend payments from Canadian equities.
Both these amendments impact the standard reclaim procedure for dividend payments from Canadian equities, when submitting reclaims through Clearstream Banking.
Amended NR7-R instructions
The CRA has issued amended instructions in regards to the reclaim form NR7-R, stating that one single NR7-R form is now acceptable for reclaiming on multiple payment dates, provided the following conditions are met:
- The NR7-R form (covers only one beneficial owner, income type, calendar year, CUSIP/ISIN number, Canadian payer or agent’s non-resident tax account number).
Furthermore, when completing the NR7-R form for multiple payment dates, then it is a requirement that the part “Details of payment and tax withheld” is completed with the tax year, total gross amounts, total tax remitted, total tax payable and total refund, along with the security name and ISIN/CUSIP number. The payable date and number of shares are to be left blank; and
- A supporting breakdown is attached to the reclaim form providing all of the above details of the multiple payments and tax withheld split per payment date and including the number of shares.
Previously, one separate NR7-R reclaim form had to be completed per each payment. This practice will, in addition to the above, continue to be acceptable by the CRA until further notice.
Implementation of minimum tax reclaim amount
A minimum reclaim amount of CAD 350,00 will be implemented by our depository RBC Investor & Treasury Services in regards to tax reclaims for dividend payments from Canadian equities. Tax reclaims submitted on or after 1 January 2016 for an amount under this value will no longer be processed by Clearstream Banking.
Impact on customers
Customers are requested with immediate effect, to apply the above new guidelines, when submitting standard refund requests through Clearstream Banking for dividend payments from Canadian equities.
For further information about procedures, customers may contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.