Italy: Annual renewal of certificate of residence – Extension of deadline until 30 October 2020 for residents of certain countries impacted by lockdown – Update

27.07.2020

Note: This announcement, originally published on 17 April 2020, was updated to provide information on the extension of validity that has been further extended to 30 October 2020 by decision of the Italian Tax Authorities. The procedure to obtain this extension of validity described below remains in force. The content of the SWIFT was updated to reflect the current new extension. Changes have been highlighted. 

Further to Announcement C20014, Clearstream Banking1 informs customers of the procedure in place to obtain the extension of validity of the certificates of residence (CORs) until 30 October 2020, as foreseen by Circular Letter n°8 published by the Italian tax authorities.

Effective

immediately

customers wishing to obtain the extension of the deadline for their valid COR already in place and that expired on 31 March 2020 must provide Clearstream Banking with a self-declaration.

Impact on customers

The conditions for benefitting from the exemption certified for the year 2019 will remain verified and valid until 30 October 2020, provided that the following self-declaration is provided by SWIFT MT599 to our Tax Department at the latest before the first dividend payment for the benefit of relief at source or by the usual quick refund deadline if the relief at source deadline could not be met.

In the absence of this self-declaration, the existing COR will be considered as having expired on 31 March 2020, and any dividend payment will be considered as fully taxable unless a new valid COR is provided. Please refer to our Market Taxation Guide – Italy for further information concerning the certification process related to dividend payments.

Important: One SWIFT message must be provided for each account number for which the extension of validity is requested. Customers will be informed about the extension of the validity period via MT568.

SWIFT template

Attn: Tax Department-PTS Unit

Account Number: XXXXXX

CBL references (visible in CreationOnline, Xact Web Portal and MT568 released in the past) of the CORs recorded under the same account number subject to the extension of deadline: XXXXXX

Subject: Extension of Italian COR deadline in accordance with the letter issued by the Italian Tax Authority in reply to the AIBE letter

Due to the current exceptional situation related to COVID-19, we/the underlying beneficial owner(s) are/is not able to renew the COR that expired on 31 March 2020 (extended to 15 June 2020) due to the lock-down measures put in place in our/their country of residence.

Hence, as a temporary contingency measure we kindly ask you to extend the validity of the existing valid COR, held on the above-mentioned Clearstream Banking account, until 30 October 2020.

We commit to immediately informing Clearstream Banking if we are aware or become aware that we/the final beneficial owner no longer meet/s the above-mentioned conditions. We acknowledge that from 31 October 2020 onwards, a new COR with a validity from the signature date until 31 March 2021 must be provided to certify the account. We accept that, in the absence of the renewed COR, our account will be considered uncertified and any dividend paid as of 31 October 2020 will be fully taxed until a new COR is provided.

Furthermore, we acknowledge and accept that Clearstream Banking cannot be held liable in that respect. We hereby accept full responsibility in the event of any loss, claim, damage, or liability whatsoever imposed on or incurred by or asserted against Clearstream Banking by the Italian tax authorities or any other authority in connection with any action taken by Clearstream Banking in reliance upon this SWIFT communication. Therefore, we undertake to fully indemnify Clearstream Banking in respect of any such loss, claim, damage, or liability whatsoever.

Further information

For further information, please contact the Clearstream Banking Tax Help Desk or Clearstream Banking Client Services or your Relationship Officer.

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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, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.