Czech Republic: UK pension funds – Brexit impact

31.12.2020

Clearstream Banking1 would like to inform customers that effective

1 January 2021

UK pension funds will no longer benefit from the European Union (EU)/European Economic Area (EEA) applicable condition for pension funds that may benefit from a tax exemption in the Czech market.

Impact on customers

Customers wishing to continue to request relief at source on Czech securities via Clearstream Banking, for the impacted beneficial owner types, must therefore, as of 1 January 2021 and prior to the relevant Clearstream Banking deadline, provide new valid certification, should the beneficial owner qualify for a reduced tax rate under the provisions of the Double Taxation Treaty (DTT).

The documentation requirements are the following and are described in the Market Taxation Guide - Czech Republic:

  • One-Time Certification for Czech Republic withholding tax purposes regarding Debt securities and Equities held in Clearstream Banking. A new One-Time Certification will be requested when the one already in place has section 1 for EU/EEA pension funds filled in;
  • List of beneficial owners (if applicable);
  • Declaration of beneficial ownership;
  • Certificate of residence;
  • Power of Attorney (if applicable).

The templates of the forms are available under the Tax forms to use section.

Existing certification provided by customers for UK pension funds that are currently claiming exemption in accordance to the EU/EEA pension funds conditions will no longer be valid as of this date.

Further information

For further information, customers may contact Clearstream Banking Client Services, their Relationship Officer or Tax Help Desk.

------------------------------

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.