Form descriptions - Relief at source - Italian debt securities

22.02.2018

Information is provided here about the forms and their use in relation to the procedure for relief at source of withholding tax on income from Italian debt securities.

General rules:

  • Electronic signatures are not accepted. Any tax reclaim form that does not bear an original signature is considered by the Italian Tax Authorities to be a copy and is consequently rejected.
  • If the beneficial owner is a company (legal entity), each Power of Attorney and Letter of Indemnity should be printed under the company’s letterhead.

The documentation requirements vary according to status of the beneficial owner or customer, as follows:

  • When the beneficial owner is:
    • A resident of a White List country:
      • Master Instruction;
      • Self Certification;
      • Side Declaration.
    • The European Central Bank (ECB) and central banks members of the European System of Central Banks (ESCB):
      • Master Instruction.
      • Documentary evidence that the beneficial owner is effectively a central bank (for example, a copy of statutes)
    • Any other central bank or entity that manages state reserves:
      • Master Instruction;
      • Self Certification.
    • A supranational organisation recognised by the Italian law:
      • Master Instruction;
      • Self Certification.
    • An Italian resident corporation:
      • Master Instruction.
      • Letter of Indemnity from an Italian Beneficial Owner - Italian Bonds (referred to as Letter of Indemnity #2).

or:

  • When the customer of Clearstream Banking is an Italian resident corporation:
    • Letter of Indemnity from an Italian Customer - Italian Bonds (referred to as Letter of Indemnity #1).

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

Master Instruction

One-time certification that provides certain statements regarding the beneficial owner(s) of the securities. The customer certifies, among other information, that the debt securities held in the account specified and subject to the withholding tax regime are held exclusively for exempt beneficial owners whose names and Tax Identification Numbers are listed in Section II and with respect to whom the customer has provided the requested valid documentation of residence. It is valid until revoked. If any change occur that render any of the details in the Master Instruction untrue, a new Master Instruction must be forwarded to Clearstream Banking and/or the existing one must be revoked.

Before adding to an exempt omnibus account debt securities of an exempt beneficial owner that is not identified in the existing Master Instruction relating to the account concerned, the customer must provide Clearstream Banking with a new Master Instruction that includes the additional beneficial owner in addition to the Self Certification (or other documentation of exemption, if appropriate) relating to that additional beneficial owner.

Note: The European Central Bank (ECB), a central bank member of the European System of Central Banks (ESCB) or other central bank must, in addition to the Master Instruction, attach documentary evidence that they are effectively the central bank of a given country (for example, copy of statutes).

How many are provided?One per Clearstream Banking exempt account.
Who completes it?Customer.
How often is it provided?Once. Valid until revoked.
When is it provided?Before changing the account tax status from taxable to exempt; and upon changes to the list of beneficial owners.
Copy or original?Original required.

Self Certification

A Self Certification must be completed by the beneficial owner and the customer of Clearstream Banking in order to benefit of an exemption at source of withholding tax from debt securities subject to Legislative Decree 239/1996.

Details on how to complete this certificate can be found in the attachment below (called Explanatory Notes) of the Italian Ministry of Economy and Finance's guidelines.

The Self Certification currently in force is to be used. However, it is no longer mandatory to tick one of the boxes under No. 2 on the first page of the certificate (concerning Art. 76, C.7-bis of the Italian Consolidated Tax Act, approved with Presidential Decree 917/1986).

How many are provided?One per beneficial owner.
Who completes it?Beneficial owner and Clearstream Banking customer.
How often is it provided?Once. Valid until revoked.
When is it provided?Before applying for the exemption.
Copy or original?Original required.

Side Declaration

A Side Declaration confirms that the beneficial owner is an institutional investor, is not subject to the surveillance of a supervisory authority in its own country of residence but is, however, entitled to enjoy an exemption as per Circular 200/2003.

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 applying for the exemption.
Copy or original?Original required.

Letter of Indemnity from an Italian Customer - Italian Bonds
(Letter of Indemnity #1)

In order to obtain an exemption at source of withholding tax, a Letter of Indemnity must be provided in which the Clearstream Banking customer, being an Italian resident corporation, certifies whether it holds the securities as an intermediary, second level bank or beneficial owner.

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 applying for the exemption.
Copy or original?Original required.

Letter of Indemnity from an Italian Beneficial Owner - Italian Bonds
(Letter of Indemnity #2)

In order to obtain an exemption at source of withholding tax, a Letter of Indemnity must be provided in which the beneficial owner of the securities, being an Italian resident corporation, certifies his beneficial ownership.

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 applying for the exemption.
Copy or original?Original required.