Spain: New withholding tax rate

04.01.2012

Effective

1 January 2012

the withholding tax rate on interest and dividend payments is, until 31 December 2013, increased from 19% to 21%.

Background

Decree Law 20/2011, approved by the Spanish Parliament on 30 December 2011 and published in the Official Gazette on 31 December 2011, established several measures for the correction of the budget deficit.

One of these corrective measures is to increase the withholding tax rate applicable on interest and dividends paid on Spanish securities from 19% to 21%.

Decree Law 20/2011 establishes the applicability of the new tax rate between 1 January 2012 and 31 December 2013.

Impact on customers

Customer positions for which no valid tax certification is received by Clearstream Banking1 will be taxed during this period at 21%.

The possibilities to apply for quick refund or standard refund of tax withheld at source remain unchanged.

Further information

For further information, please contact the Clearstream Banking Tax Help Desk on:

LuxembourgFrankfurt
Email:tax@clearstream.comtax@clearstream.com
Telephone:+352-243-32835+49-(0) 69-2 11-1 3821
Fax:+352-243-632835+49-(0) 69-2 11-61 3821

or Clearstream Banking Customer Service or your Relationship Officer.

1. 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).