Relief at source - eligibility, documentation, deadlines - Italian debt securities

18.05.2012

Who can obtain relief at source?

Relief at source from withholding tax on interest from Italian debt securities is available through Clearstream Banking for beneficial owners as follows:

Eligible beneficial ownersRate applicable at source
Residents of a White List country0%
Supranational organisations recognised by Italian law0%
Central banks or other entities that manage state reserves0%
Italian resident corporations0%

Italian customers, provided that they have submitted the required documentation, are paid gross the interest on securities held for themselves and/or for underlying beneficial owners.

Documentation requirements

There are different documentation requirements depending on the status of the beneficial owner or customer.

  • 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 they are effectively a central bank (for example, copy of statutes).
    • An other central bank or entity that manages state reserves:
      • Master Instruction;
      • Self Certification;
      • Documentary evidence that they are effectively a central bank (for example, copy of statutes).
  • A supranational organisation recognised by the Italian law:
    • Master Instruction;
    • Self Certification.
  • An Italian resident corporation:
    • 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.

Deadlines for receipt of documents

Documentation for relief at source from withholding tax on interest from Italian debt securities must be received by Clearstream Banking by the following deadlines:

DocumentDeadline for receipt by Clearstream Banking
Master InstructionBefore changing the account tax status from taxable to exempt; or Upon changes to the list of beneficial owners.
Self CertificationBefore applying for tax exemption.
Side DeclarationBefore applying for tax exemption.
Letter of Indemnity from an Italian Customer
- Italian Bonds (Letter of Indemnity #1)
Before applying for tax exemption.
Letter of Indemnity from an Italian Beneficial Owner
- Italian Bonds (Letter of Indemnity #2)
Before applying for tax exemption.