Quick refund - eligibility, documentation, deadlines - Canadian trust instruments

15.09.2016

Who can apply for a quick refund?

Beneficial owners are eligible for a quick refund of withholding tax on income from Canadian trust instruments as follows:

Eligible beneficial ownersRate applicable at source
Residents of a DTT country (non-resident according to Form NR301) aTax treaty or 25%, whichever is lower

a. Partnerships (NR302) and Hybrid Entities (NR303) are not considered eligible and any reclaim applications must be made via the standard refund procedure.

Important note:

Customers acting as Swiss intermediary for final beneficial owners of Canadian trust instruments can also apply for a quick refund via Clearstream Banking.

Documentation requirements

For a quick refund of withholding tax on income from Canadian trust instruments, the documentation requirements for residents of a DTT country who qualify as non-resident according to Form NR301 are as follows:

  • One-Time Certificate – Canadian Equities and Trust Instruments;
  • Per-Payment Breakdown of Holdings;
  • CRA Form NR301, as follows:
    • For customers holding proprietary assets: An original Form NR301, signed by the customer as final beneficial owner qualifying for DTT relief according to Form NR301, must be submitted to Clearstream Banking directly.
    • For customers acting as intermediary: An original Form NR301, signed by the final beneficial owner qualifying for DTT relief according to Form NR301, must be submitted to and retained by the customer, who must provide it promptly to Clearstream Banking upon request at any time.
      The customer must exercise due diligence with respect to the information provided on this form and must verify whether the information is sufficient to claim DTT relief on behalf of the final beneficial owner.

And, upon request:

  • List of Beneficial Owners – Canadian Equities and Trust Instruments;
  • CRA Form NR301 (from customers acting as intermediary);
  • Certificate of Residence;
  • Any other tax documentation as required from time to time.

Important notes:

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

Positions for which customers have not submitted the requested documentation before the prescribed deadline will be taxed, through Clearstream Banking, at the maximum applicable rate.

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

Deadline for receipt of documents

The deadline for reclaiming withholding tax on Canadian securities using the quick refund procedure through Clearstream Banking is as defined below:

Event payment date

Clearstream Banking deadline

From 1 January to 30 November

12 December, 18:00 CET of the year of the dividend payment (or the last business day before this if the 16th is not a business day).

From 1 December to 31 December

4 January, 18:00 CET of the year following the dividend payment (or the last business day before this if the 6th is not a business day).