South Korea: Depositary Receipts - update to documentation for relief at source
Clearstream Banking1 informs customers that in order to obtain relief at source or exemption of withholding tax on dividends from South Korean Depositary Receipts (DRs):
- an additional electronic instruction should be provided;
- the new template of the BO List for uploads via the Upload Beneficial Owner List application must be used.
Impact on customers
Customers must provide Clearstream Banking with an electronic instruction via Xact Web Portal, CreationOnline, SWIFT MT565, MT568 or MT599. One electronic instruction must be submitted per tax rate.
The electronic instruction must include:
- Corporate Action ID (For CASCADE events, customers must use “CASCADE” as the Corporate Action ID);
- Account number;
- Elected option;
- Instructed quantity (please refer to the eligible balance on the account);
- Applicable tax rate (to be specified in the SWIFT field :92a::TAXB or for Xact Web Portal and CreationOnline in the Tax Rate field);
- Customer’s full contact details;
- The BO List reference (to be specified in the SWIFT field INST or for Xact Web Portal and CreationOnline in the Beneficial Owner Details field);
- For OIVs/OPCIVs only, the following wording in the SWIFT field INST or for Xact Web Portal and CreationOnline in the Corporate Actions Narrative field:
“We, Account number _____ (insert account number) confirm that the underlying holders of the OIV/OPCIV (delete as appropriate) have not changed since the date of the form 29-13.”
Important note: Any missing information might result in a rejection of the electronic instruction.
Upload of BO List
Along with the electronic instruction, customers must submit a BO List via Clearstream Banking’s Upload Beneficial Owner List application. Customers must upload the BO List using the new template.
Important note: BO lists that are modified, altered, do not fit the template provided or with incorrect data will be rejected by Clearstream Banking.
Note: The BO list must be associated to a valid electronic instruction. The BO list does not constitute a valid instruction without a valid electronic instruction.
For further information, customers may contact the Clearstream Banking Tax Help Desk or Clearstream Banking Client Services or their 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 AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.