Form descriptions - Quick refund - Spanish equities

08.12.2017

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

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

  • One-Time Certificate for Spanish Equities;
  • Breakdown of refund

In addition, depending on the status and residency of the final beneficial owner, the following documentation must be submitted:

  • Petición de Reducción;
  • Power of Attorney (if the customer or a third party is completing the “Petición de Reducción” on behalf of the beneficial owner);
    or
  • Certificate of Residence;
    or
  • Copy of Convenio Constitutivo.

Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Spanish equities, as follows:

One-Time Certificate for Spanish Equities

To be submitted for the first quick refund application (if not already provided), completed and duly signed by the Clearstream Banking customer.

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?At the latest, on the third calendar day of the month following the month in which the dividend payment was made, by 10:00 CET or by the deadline specified in the SWIFT notification.
Copy or original?Original required.

Breakdown of refund

The template of Breakdown of refund should mandatory be used and all columns must be completed in order to be accepted. One breakdown of refund may contain several refund applications (one line per refund application) but cannot contain both quick and standard refund applications. It should be provided

  • via a duly completed spreadsheet, password-protected, by email to taxspainrefunds@clearstream.com, with the password and the customer instruction to use the spreadsheet for quick or standard refund sent separately via CreationOnline or SWIFT free-format message.
    The CreationOnline or SWIFT free-format message must, in either case, include the following details:
    Attention: PTS Tax Services
    Market: Spain
    Type of refund: Quick or Standard
    Please find hereafter the password to open our breakdown spreadsheet sent to your attention by email on (date and time) from the email address (email address of the sender)

    Password:

Who completes it?

Customer.

How often is it provided?

Per refund application.

When is it provided?

At the latest, on the third calendar day of the month following the month in which the dividend payment was made, by 10:00 CET, or by the deadline specified in the SWIFT notification.

Copy or original?

Email or SWIFT as explained above.

Petición de Reducción

If the beneficial owner is a resident of Austria, the Netherlands, Sweden or Switzerland (countries for which there is a “Petición de Reducción”), the official tax form can be obtained from the Spanish Tax Authorities or from the customer’s local tax authority, if available, and must be completed by or on behalf of the beneficial owner and by the beneficial owner's local tax authorities.

A single Petición de Reducción may include several ISINs and payment dates provided that all of them are related to the same beneficial owner and calendar year.

How many are provided?One per beneficial owner.
Who completes it?Beneficial owner and beneficial owner's tax authorities.
How often is it provided?Per quick refund application.
When is it provided?At the latest, on the third calendar day of the month following the month in which the dividend payment was made, by 10:00 CET, or by the deadline specified in the SWIFT notification.
Copy or original?Original required.

Power of Attorney

If the customer or a third party is completing the “Petición de Reducción” on behalf of the beneficial owner.

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?At the latest, on the third calendar day of the month following the month in which the dividend payment was made, by 10:00 CET, or by the deadline specified in the SWIFT notification.
Copy or original?Original required.

Certificate of Residence

For each beneficial owner resident in a country that has a Double Taxation Treaty (DTT) in force with Spain but for which there is no "Petición de Reducción”, a valid Certificate of Residence must be issued. The Certificate of Residence is considered as valid if:

  • It covers the payment date. Its validity is for one year from its issuance date. Should it specify a specific period, the document will be valid for that particular period only, regardless of the date of issuance.
  • It is issued by the local Tax Authorities of beneficial owner’s country of residence.
  • It refers to the article of the relevant DTT granting the reduced rate.
  • It is duly signed and stamped by the local Tax Authorities of beneficial owner’s country of residence.
  • It is either in Spanish or in English.
  • It is presented in its original form.

Moreover, the Certificate of Residence may be required by certain issuers on a per-payment basis.

How many are provided?One per beneficial owner.
Who completes it?Beneficial owner’s tax authorities.
How often is it provided?Annually.
When is it provided?At the latest, on the third calendar day of the month following the month in which the dividend payment was made, by 10:00 CET, or by the deadline specified in the SWIFT notification.
Copy or original?Original required.

Convenio Constitutivo

If the beneficial owner is a supranational organisation recognised by Spanish law.

How many are provided?One per final beneficial owner.
Who submits it?Customer (supranational).
How often is it provided?Once. Valid until revoked.
When is it provided?At the latest, on the third calendar day of the month following the month in which the dividend payment was made, by 10:00 CET, or by the deadline specified in the SWIFT notification.
Copy or original?Copy required.

For customers who wish to follow the old procedure instead of the simplified procedure with the Breakdown of Refund only:

List of Beneficial Owners - Spanish Equities

A List of Beneficial Owners must contain, per entity, the ISIN, name of security, payment date, full name of the beneficial owner, full fiscal address, nominal amount, total gross coupon proceeds and total tax withheld.

The information included in the List of Beneficial Owners must be accurate at 19:00 CET on the relevant record 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?At the latest, on the third calendar day of the month following the month in which the dividend payment was made, by 10:00 CET, or by the deadline specified in the SWIFT notification.
Copy or original?Original required.