Czech Republic: Validity of electronic Certificates of Tax Residence
Clearstream Banking1 would like to inform customers that the Czech National Bank (CNB), acting as paying agent, has clarified its requirements towards the electronic Certificates of Tax Residence (COTR) issued by foreign tax authorities. Effective
CNB will only accept the COTRs when provided in a form corresponding to the requirements stipulated by Czech legislation.
Section 12 of Act No. 91/2012 Coll. on Private International Law stipulates that a document issued by a court, a public notary or an authority of a foreign country or by diplomatic or consular agents can be considered as an official document in the Czech Republic only if it has been properly certified by an apostille.
When the certification is not possible in the foreign country, an Embassy of the Czech Republic shall legalise such documentation provided that it has no doubt on its authenticity (Superlegalisation).
The validity and acceptance of the electronic COTRs has also been raised in a meeting of the Czech Capital Market Association, where participants asked for the establishment of a common market practice which would be confirmed by the local General Tax Directorate and the Czech National Bank in its role of market’s regulator
Impact on customers
The CNB no longer accepts electronic COTRs that are not properly legalised.
Customers of Clearstream Banking are reminded that a notarised and apostilled copy will be mandatory if the COTR was issued and stamped electronically by the beneficial owner’s local tax authority, or when a copy of the COTR is provided, as already mentioned in announcement A16182, dated 20 December 2016.
Please also refer to our Market Taxation Guide - Czech Republic for further information on the certification requirements.
For further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your Relationship Officer.
1. Clearstream Banking refers collectively 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, and Clearstream Banking AG (for Clearstream Banking Frankfurt customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.