Form descriptions - Quick refund - Canadian equities

08.05.2015

For quick refund of withholding tax on income from Canadian equities, the documentation requirements vary according to the type of eligible beneficial owner, as follows:

For Residents of a DTT country who qualify as non-resident according to Form NR301:

  • One-Time Certificate – Canadian Equities and Trust Instruments;
  • Per-Payment Breakdown of Holdings;
  • CRA Form NR301 (when applicable);

and, in addition, for pension plans that are exempt by virtue of a DTT:

  • A letter from the pension plan declaring that it is operated exclusively to provide pension or retirement benefits and that it qualifies for exemption on dividend income under the specified article of the relevant country treaty with Canada; and
  • A letter from the local tax authority confirming the tax status of the pension or retirement plan;

and, upon request:

  • List of Beneficial Owners – Canadian Securities;
  • CRA Form NR301 (from customers acting as intermediary);
  • Certificate of Residence.

For Tax-exempt entities:

  • One-Time Certificate – Canadian Equities and Trust Instruments;
  • Per-Payment Breakdown of Holdings;
  • A Withholding Tax Exemption Letter issued by the CRA (including the “tax-exempt registration number").

Important note:

Customers acting as Swiss intermediary for final beneficial owners of Canadian equities are required to submit a One-Time Certificate – Canadian Equities and Trust Instruments - Swiss Intermediary only.

Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Canadian equities.

One-Time Certificate - Canadian Equities and Trust Instruments (Own Assets, Client Assets or Own and Client Assets)

One-time certification that provides information regarding the Clearstream Banking customer, stating that it holds Canadian equities and/or trust instruments on behalf of one or more beneficial owners that are entitled to apply for a quick refund.

or, as appropriate,

One-Time Certificate - Canadian Equities and Trust Instruments – Swiss Intermediary

One-time certification that provides information regarding the Clearstream Banking customer, stating that it holds Canadian equities and/or trust instruments in its role as Swiss intermediary and confirming that it will be compliant with any of its obligations as stated in the Double Taxation Treaty (DTT) between Canada and Switzerland and in the terms of the Canadian Information Circular IC76-12.

How many are provided?One per Clearstream Banking account.
Who completes it?Customer.
How often is it provided?Once. Valid until revoked.
When is it provided?When requesting the quick refund, but no later than 10:00 CET on the 5th calendar day of the year following the income payment (or the last business day before this if the 5th is not a business day).
Copy or original?Original required.

Per-Payment Breakdown of Holdings

To apply for a quick refund, the customer must provide, per beneficial owner, where appropriate, a Breakdown of Holdings that includes the ISIN/Common Code of the security, the payment date, the Clearstream Banking customer account number, the total holding position, the reclaimed position and the tax rate to be applied (stock/ cash, whenever applicable).

How many are provided?One per Clearstream Banking account.
Who completes it?Customer.
How often is it provided?Per quick refund request.
When is it provided?When requesting the quick refund, but no later than 10:00 CET on the 5th calendar day of the year following the dividend payment (or the last business day before this if the 5th is not a business day).
Copy or original?The breakdown must be delivered via the BO upload function available under Applications on the Clearstream Banking website.

NR301 Declaration of Eligibility for Benefits under a Tax Treaty for a Non-Resident Taxpayer

Customers holding proprietary assets must submit, directly to Clearstream Banking, a Form NR301 signed by themselves as final beneficial owner qualifying for Double Taxation Treaty (DTT) relief as non-resident according to Form NR301.

Customers holding assets as intermediary must receive and retain a Form NR301 signed by the final beneficial owner qualifying for DTT relief as non-resident according to Form NR301 and must provide it promptly to Clearstream Banking upon request at any time.

N.B.: Form NR301 must be dated before the first relevant income payment.

How many are provided?One per beneficial owner.
Who completes it?Beneficial owner.
How often is it provided?Once. Valid for three years from the end of the calendar year in which it is signed and dated by the final beneficial owner, unless there is a change in the taxpayer’s eligibility for treaty benefit, in which case a new form must be provided immediately.
When is it provided?(Own assets) when requesting the quick refund, but no later than 10:00 CET on the 5th calendar day of the year following the dividend payment (or the last business day before this if the 5th is not a business day).
(Intermediary) upon request.
Copy or original?Original required.

Letter from the Pension Plan

Beneficial owners that are pension plans exempt by virtue of a DTT must submit a Letter from the Pension Plan declaring that it is operated exclusively to provide pension or retirement benefits and that it qualifies for exemption on dividend income under the specified article of the relevant country treaty with Canada.

How many are provided?One per beneficial owner.
Who completes it?The Pension plan.
How often is it provided?Once. Valid until expiration. Customers are responsible, at all relevant times, to monitor the expiration of such letter and either to obtain renewal of such letters or, immediately on expiration of such letters, to provide instructions to have the correct applicable Canadian withholding tax deducted and that Clearstream Banking has no responsibility or liability in this regard.
When is it provided?When requesting the quick refund, but no later than 10:00 CET on the 5th calendar day of the year following the dividend payment (or the last business day before this if the 5th is not a business day).
Copy or original?Original required.

Letter from the local tax authority confirming the tax status of the Pension Plan

Beneficial owners being pension plans that are exempt by virtue of a DTT must submit a Letter from the local tax authority confirming the tax status of the Pension Plan.

How many are provided?One per beneficial owner.
Who completes it?The local tax authority of the Pension plan.
How often is it provided?Once. Valid until expiration. Customers are responsible, at all relevant times, to monitor the expiration of such letter and either to obtain renewal of such letter or, immediately on expiration of such letter, to provide instructions to have the correct applicable Canadian withholding tax deducted and that Clearstream has no responsibility or liability in this regard.
When is it provided?When requesting the quick refund, but no later than 10:00 CET on the 5th calendar day of the year following the dividend payment (or the last business day before this if the 5th is not a business day).
Copy or original?Original required.

List of Beneficial Owners - Canadian Securities

Provides the list of beneficial owners that obtained the reduced rate at source.

Who completes it?Customer.
How often is it provided?Upon request.
When is it provided?Upon request.
Copy or original?Original required.

Certificate of Residence

A Certificate of Residence with the beneficial owner’s full name and address issued by the beneficial owner’s tax authorities.

How many are provided?One per beneficial owner.
Who completes it?Beneficial owner’s tax authorities.
How often is it provided?Upon request.
When is it provided?Upon request.
Copy or original?Original required.

Withholding Tax Exemption Letter issued by the CRA

The Certificate of Exemption indicates the tax-exempt status of the beneficial owner of the securities as granted in the letter by the Canada Revenue Agency (CRA).

Eligible beneficial owners must contact the CRA and submit an application to request recognition. Once a favourable Certificate of Exemption is issued, the original should be sent to Clearstream Banking.

Note: Each ruling from the CRA is on a case by case basis.

How many are provided?One per beneficial owner.
Who completes it?The Canada Revenue Agency.
How often is it provided?Once. To be renewed at expiry date. Customers are responsible, at all relevant times, to monitor the expiration of such letter and either to obtain renewal of such letter or, immediately on expiration of such letter, to provide instructions to have the correct applicable Canadian withholding tax deducted and that Clearstream Banking has no responsibility or liability in this regard.
When is it provided?When requesting the quick refund, but no later than 10:00 CET on the 5th calendar day of the year following the dividend payment (or the last business day before this if the 5th is not a business day).
Copy or original?Original or authenticated copy required.