Debt securities - rates, eligibility, availability of relief etc. - Canada

27.12.2012

Withholding tax

Standard rate of withholding tax:0% - 25%Holding requirements / restrictions:Yes

No withholding tax is imposed on interest from Canadian debt securities held in Clearstream Banking and interest payments are systematically paid gross with no action required from the customer or beneficial owner to obtain exemption.

However, 25% withholding tax may apply in very rare cases to:

Important note:

If the underlying final beneficial owner is subject to the above-mentioned taxation, then, on request from the customer, 25% withholding tax may be applied. It is the responsibility of the customer to ensure that final beneficial owners are eligible for the tax rates applied for, including the Clearstream Banking default rate. Neither Clearstream Banking nor its local depository has any direct or indirect liability towards the Canadian authorities in this regard.