Forms descriptions - relief at source - Icelandic debt securities

17.12.2015

The following is a list of information regarding the various tax forms to be completed in order to benefit from relief at source of withholding tax on income from Icelandic securities. The templates of the forms are available on our Tax Forms to use section.

Tax exempt debt securities (tax exempt for non-residents)

One-Time Certificate for Icelandic Banks complying with Article 3.2 of Act no. 94/1996

The One-Time Certificate for Icelandic Banks complying with Article 3.2 of Act no. 94/1996 should be provided by all customers acting as Icelandic intermediary banks.

Note: Such entities are considered as Icelandic tax withholding agents, implying they must retain the appropriate tax amounts from their respective clients.

How many are provided?

One per Clearstream customer.

Who completes it?

Clearstream's customer.

How often is it provided?

Once, before starting to trade.

When is it provided?

Before starting to trade.

Copy or original?

Original required.

A Non-Exempt Transactions report

If Icelandic tax exempt debt securities are held on behalf of either Icelandic or undisclosed beneficial owners, a Non-Exempt Transactions report must be provided to document the taxable transactions that are performed on behalf of such beneficiaries. 

How many are provided?

One per transaction.

Who completes it?

Clearstream's customer.

How often is it provided?

One per transaction.

When is it provided?

On the day of the sale.

Copy or original?

Original required.

Other debt securities

One-Time Declaration for Tax Exemption on Transaction Sales of Icelandic debt securities

The One-Time Declaration for Tax Exemption on Transaction Sales of Icelandic debt securities should be provided by all customers holding on behalf of non-resident beneficial owners (qualifying for exemption on transaction sales) before starting to trade in the above Icelandic debt securities and thus before Icelandic debt are first delivered to Clearstream Banking.

How many are provided?

One per Clearstream customer.

Who completes it?

Clearstream's customer.

How often is it provided?

Once before starting to trade in Icelandic debt securities.

When is it provided?

Before starting to trade in Icelandic debt securities.

Copy or original?

Original required.

One-Time Certificate for Icelandic Securities

The One-Time Certificate for Icelandic Securities should be provided by all customers before starting to trade in the above Icelandic debt securities and thus before Icelandic debt are first delivered to us.

How many are provided?

One per Clearstream customer.

Who completes it?

Clearstream's customer.

How often is it provided?

Once before starting to trade in Icelandic debt securities.

When is it provided?

Before starting to trade in Icelandic debt securities.

Copy or original?

Original required.

Registration of Beneficial owner Information for Icelandic Tax Purpose

Before starting to trade in the above Icelandic debt securities the customer should register their beneficial owners (or themselves, when applicable) with us by submitting the Registration of Beneficial owner Information for Icelandic Tax Purpose.

Note: An Icelandic Tax Identification Number should be used when available. Otherwise, the customer should register the beneficial owner’s local Tax Identification Number or social security number.

How many are provided?

One per each beneficial owner.

Who completes it?

Clearstream's customer.

How often is it provided?

Once per each beneficial owner.

When is it provided?

Before starting to trade in Icelandic debt securities.

Copy or original?

Original required.

Certificate of residence

A certificate of residence is required for beneficial owners that are resident of a Double Taxation Treaty (DTT) country.

The Certificate of Residence, which must mention that the beneficial owner is considered resident for the purposes of the DTT between its country of residence and Iceland, will remain valid for five years. If, during this period, the beneficial owner’s circumstances change, the Certificate of Residence must be replaced accordingly.

To be applicable for relief at source it must be dated before the first relevant sale or interest payment, as applicable.

How many are provided?

One per beneficial owner

Who completes it?

The beneficial owners local Tax Authorities

How often is it provided?

Every five years

When is it provided?

No later than the date of the sale or two business days prior the first coupon/ redemption date.

Copy or original?

Original required

Exemption Letter

For tax exempt beneficial owners that are “International organisations” granted exempt status by the RSK an Exemption Letter from the Icelandic tax Authorities confirming the exempt status must be provided to Clearstream Banking.

Note: Eligible entities must apply for exemption by sending an application to rsk@ rsk.is or to:

Ríkisskattstjóri
Laugavegi 166
150 Reykjavík
Iceland

How many are provided?

One per beneficial owner.

Who completes it?

The Icelandic Tax Authorities.

How often is it provided?

Once (or renewal at expiry date, if applicable).

When is it provided?

No later than the date of the sale or two business days prior the first coupon/ redemption date.

Copy or original?

Copy.

An Exemption Certificate

For tax exempt beneficial owners that are “Foreign states and other official or public entities” claiming exemption from Icelandic tax a certificate from the respective tax authorities confirming that the beneficial owner is exempt from tax in its country of residence must be provided to Clearstream Banking.

How many are provided?

One per beneficial owner.

Who completes it?

The local tax Authorities of the beneficial owner.

How often is it provided?

Once (or renewal at expiry date, if applicable).

When is it provided?

No later than the date of the sale or two business days prior the first coupon/ redemption date.

Copy or original?

Copy.

One-Time Certificate for Icelandic Banks complying with Article 3.2 of Act no. 94/1996

The One-Time Certificate for Icelandic Banks complying with Article 3.2 of Act no. 94/1996 should be provided by all customers acting as Icelandic intermediary banks.

Note: Such entities are considered as Icelandic tax withholding agents, implying they must retain the appropriate tax amounts from their respective clients.

How many are provided?

One per Clearstream customer.

Who completes it?

Clearstream's customer.

How often is it provided?

Once before starting to trade in Icelandic tax exempt debt securities.

When is it provided?

Before starting to trade in Icelandic tax exempt debt securities.

Copy or original?

Original required.

A Non-Exempt Transactions report

A Non-Exempt Transactions report must be provided, if the Icelandic debt securities are held in the customer account for transactions that are performed on behalf of taxable beneficial owners.

How many are provided?

One per internal transfer.

Who completes it?

Clearstream's customer.

How often is it provided?

One per internal transfer.

When is it provided?

On the effective settlement date.

Copy or original?

Original required.

Report of Internal Transfers of Beneficial ownership

If Icelandic debt securities held in the customer account were transferred from one beneficial owner to another without a settlement instruction being forwarded to us, the customer is requested to submit to us, on the effective settlement date of the transfer a Report of Internal Transfers of Beneficial Ownership.

How many are provided?

One per internal transfer.

Who completes it?

Clearstream's customer.

How often is it provided?

One per internal transfer.

When is it provided?

On the effective settlement date.

Copy or original?

Original required.