Depository Receipts and other non-U.S. securities: New long form reclaim service - Update
Note: This announcement, originally published on 27 September 2016 and updated on 4 October 2017, has been further updated to provide additional information on the deadline for receipt of documents. Changes have been highlighted.
Clearstream Banking1 would like to inform customers that they can now send their long form reclaim applications on Depository Receipts and other non-U.S. securities held with Citibank U.S. directly to Clearstream Banking Luxembourg, effective
Depository Receipts are financial instruments issued by a bank to represent a foreign company's publicly traded securities. They are listed and traded on the local stock exchange, whilst the actual shares of the company are held by a custodian bank in their original country.
The term “long form reclaim” reflects the process to recover the tax amounts withheld in excess at source from the respective issuer's local tax authorities. As part of Clearstream Banking’s continuous efforts to improve its services, Clearstream Banking has arranged, together with its agent Citibank, for customers to be able to send their long form reclaim applications directly to Clearstream Banking, provided that the depository offers this service.
New service process
Customers wishing to start the long form process via Clearstream Banking should send an original version of the “Letter of request to Clearstream Banking for reclaim of withholding tax on Depository Receipts and other non-U.S. securities” (attached at the end of this Announcement) duly completed and signed to Clearstream Banking offices in Luxembourg.
Upon receipt of the request, Clearstream Banking will investigate the following details with its depository:
- Availability of a long form service for the particular event;
- Certification requirements for the particular beneficial owner; and
- Statutory deadline and Clearstream Banking deadline to receive the original documentation.
Upon receipt of the above information from its depository, Clearstream Banking will relay these details to its customers via SWIFT notification.
Deadline for receipt of documents
Clearstream Banking’s deadline to receive the original documents for a long form reclaim application is, at the latest, four months before the applicable market statutory deadline. Any reclaim received after this deadline will be rejected by Clearstream Banking.
Customers are reminded that each long form reclaim request will be treated on a case-by-case basis with a minimum threshold amount of USD 750 (long form reclaim below that amount will not be considered). Although Clearstream Banking will help its customers to mitigate rejections of the documents, neither Clearstream Banking nor the agent accepts responsibility for the acceptance or non-acceptance of the reclaim by the tax authorities of the respective country. It remains the customer’s responsibility to determine any entitlement to a refund of tax withheld, to complete the required forms correctly and to calculate the amount due.
For further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking Frankfurt (CBF) customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.