Form descriptions - Quick refund - Italian equities

17.10.2017

Information is provided here about the forms and their use in relation to the procedure for quick refund of withholding tax on income from Italian equities.

The documentation requirements are the same for all types of beneficial owner, as follows:

  • One-Time Certificate for Italian Equities;
  • One-Time Master Instruction/Dividends at Source (O.T.M.I.);
  • Certificate of Residence;
  • Italian Equities: List of Beneficial Owners.

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

One-Time Certificate for Italian Equities

This form is a certification that provides certain statements regarding the beneficial owner of the securities and must be completed for each account in which Italian equities are held on behalf of beneficial owners for whom a reduced withholding tax rate can be applied.

The customer certifies, among other things, whether he is holding the Italian equities on behalf of a single beneficial owner (box 1) or on behalf of more than one beneficial owner, including the customer, if applicable (box 2).

The One-Time Certificate is valid until revoked. Changes to any of its details must be communicated to Clearstream Banking without delay in a new certificate.

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?Before the first quick refund deadline.
Copy or original?Original required.

One-Time Master Instruction/Dividends at Source (O.T.M.I.)

An O.T.M.I. must be completed and signed by the beneficial owner for which quick refund is requested and addressed to Clearstream Banking Luxembourg in its role of withholding agent. By doing so, the eligible beneficial owner demands, among other things, that the applicable reduced tax rate be refunded.

The O.T.M.I. includes the different possibilities of tax relief. According to the eligibility of the beneficial owner, one box only must be ticked; O.T.M.I.s on which more than one box is ticked will be considered as not applicable.

The O.T.M.I. will be considered as valid for a quick refund application only if it covers the ex-date of the dividend payment for which the refund is requested.

Important note:

The Tax Identification Number (TIN) of the beneficial owner(s), legal representative (if applicable), co-owner(s) etc. is mandatory. The O.T.M.I. can be accepted without a TIN only if the respective entity has no TIN allocated due to its status (for example, a central bank, supranational organisation etc.).

In such cases, Clearstream Banking must receive a request, via SWIFT or CreationOnline, to issue a TIN. The O.T.M.I. is valid until revoked but any change regarding the mandatory information of the beneficial owner or of the legal representative (such as name, tax status, address, TIN) must be communicated by the customer to Clearstream Banking without delay in a new certificate.

How many are provided?One per beneficial owner.
Who completes it?Beneficial owner.
How often is it provided?Once. Valid until revoked.
When is it provided?Before the first quick refund deadline and covering the ex-date of the respective dividend payment.
Copy or original?Original required.

A version of the O.T.M.I. form, with some explanatory notes on how to complete it, is provided, for information purposes only, as an attachment to this page.

Certificate of Residence

Note: Beneficial owners that are supranational organisations recognised by Italian law are not required to submit a Certificate of Residence to obtain tax exemption on dividend payments.

A Certificate of Residence issued by the beneficial owner’s local tax authorities will be accepted, provided that the following conditions are met:

1. It certifies the following:

  • The beneficial owner’s full name, address and Tax Identification Number (TIN).
  • That the beneficial owner is subject to direct taxation in its country of residence.
  • That the beneficial owner is resident in accordance with Article 4 of the DTT between its country of residence and Italy.
  • (In order to obtain the 1.375%, 1.20% or 11% reduced tax rates) that the beneficial owner is subject to corporate tax in its country of residence or is established as a pension fund in its country of residence (which must be an EU/EEA Member State).
  • Note: A Certificates of Residence is accepted without a Tax Identification Number only if the beneficial owner has no TIN allocated by its local tax authority due to its status (for example, a central bank). 

2. It is signed and stamped by the respective beneficial owner’s local tax authority on or after 1 January of the respective year.

A Certificate of Residence is valid for the calendar year in which it is issued and until 31 March of the following calendar year. A renewed Certificate of Residence must be sent to Clearstream Banking together with an accompanying letter, mentioning, as mandatory details, the customer account number and the TIN of each beneficial owner, which must be identical to the TIN included in the O.T.M.I. already provided by the respective beneficial owner.

3. CORs issued in electronic format are valid and acceptable only if they are verifiable, meaning that they can be checked and confirmed, for example:

  • When an original stamp and signature of the officer in charge of its issuance is added to the electronic format; or
  • When the validity of such a documents can be verified through the official website of the foreign tax authorities.

The COR will be considered as valid for a quick refund application only if it covers the ex-date of the dividend payment for which the refund is requested.

Important note:

For Spanish and Portuguese beneficial owners applying for the treaty tax rate, an electronic Certificate of Residence, issued by the tax authorities of Spain and Portugal is considered as legally acceptable for the purposes of obtaining the respective treaty rate, provided that it is submitted as a complement to the appropriate tax relief form, duly completed and certified in all sections (apart from the section reserved for the local tax authority) and that it meets the following criteria:

  • It is provided to Clearstream Banking in printed paper copy in due time; and
  • It is issued under the double taxation treaty in force; and
  • It includes the validation code necessary for the authentification process; and
  • It is confirmed as authentic on the website of the respective local tax authority.
How many are provided?One per beneficial owner.
Who completes it?Beneficial owner's tax authority.
How often is it provided?Annually. Valid the calendar year in which it is issued and until 31 March of the following calendar year.
When is it provided?Before the first quick refund deadline and covering the ex-date of the respective dividend payment.
Copy or original?Original required.

Italian Equities: List of Beneficial Owners

Customers that hold equities in their account on behalf of more than one beneficial owner - including themselves, if applicable - (that is, customers that have checked box 2 of the “One-Time Certificate for Italian Equities”), are required to provide an “Italian Equities: List of Beneficial Owners”.

The declaration provides a list of all the beneficial owners whose Italian equities are held in the given customer account, their respective holdings and the withholding tax rate (reduced or not) applicable to the dividend payment made to them.

The “Italian Equities: List of Beneficial Owners” must be received by Clearstream Banking via the upload facility on Clearstream Banking’s website (under Asset Services / Tax Services / Upload BO list), or via SWIFT or CreationOnline, before each dividend payment date.

How many are provided?One per Clearstream Banking account.
Who completes it?Customer.
How often is it provided?Per quick refund application.
When is it provided?Before each quick refund deadline.
Copy or original?Upload via Clearstream Banking’s Online Upload facility, using the template provided.