Relief at source - eligibility, documentation, deadlines - Canadian trust instruments

08.02.2013

Who can obtain relief at source?

Beneficial owners are eligible for relief at source from withholding tax on income from Canadian trust instruments as follows:

Eligible beneficial ownersRate applicable at source
Resident 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 notes:

Relief is only available on trust unit distribution and not on distributions from capital trust securities.

Customers acting as Swiss intermediary for final beneficial owners of Canadian trust instruments can also obtain relief at source via Clearstream Banking.

Documentation requirements

For relief at source of withholding tax on income from Canadian trust instruments, the documentation requirements for beneficial owners who are residents of a DTT country and 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 (when applicable);
  • 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.

Deadlines for receipt of documents

Documentation for relief at source from withholding tax on dividends from Canadian trust instruments must be received by Clearstream Banking by the following dates:

DocumentDeadline for receipt by Clearstream Banking
One-Time Certificate – Canadian Equities and Trust InstrumentsThree business days before the first dividend payment date by 10:00 CET
Per Payment Breakdown of HoldingsThree business days before the dividend payment date by 10:00 CET
CRA Form NR301Own assets: Three business days before the first dividend payment date by 10:00 CET
Client assets: Upon request
Certificate of ResidenceUpon request
List of Beneficial Owners - Canadian SecuritiesUpon request