General information - types of securities, deadlines, other market specifics - Iceland

08.04.2020

Types of securities eligible in Clearstream Banking

The eligible securities issued in Iceland are as follows:

Debt securities:

Debt securities eligible in Nasdaq CSD Iceland (NCSD):

  • Government bonds;
  • Treasury bills;
  • Housing Finance Fund debt (HFF);
  • Corporate debt securities;
  • Corporate money market instruments.

Equities:

  • Ordinary shares

Types of beneficial owner

The following types of beneficial owners are recognised for tax purposes in Iceland:

  • Residents of a DTT country;
  • Non-residents of Iceland;
  • Tax-exempt entities;
  • Icelandic banks complying with Article 3.2 of Act no 94/1996;
  • Icelandic beneficial owners.

Deadlines1

Relief at source

In order to benefit from relief at source on Icelandic securities, eligible beneficial owners will need to ensure that we receive the accurate documentation by the following deadlines:

Debt securities exempt from non-resident taxation
Document (Interest)Deadline
A one-time certificate for Icelandic Banks complying with Article 3.2 of Act no. 94/1996

Five business days before the first interest or redemption payment date at 10:00 CET.


Other debt securities (not exempt from non-resident taxation)
Document (Interest)Deadline
One-time certificate for Icelandic securitiesTwo business days before the first coupon/redemption payment date at 10:00 CET.
Registration of beneficial owner information for Icelandic tax purposesTwo business days before the first coupon/redemption payment date at 10:00 CET.
Certificate of residenceTwo business days before the first coupon/redemption payment date at 10:00 CET.
Letter from the Icelandic tax authoritiesTwo business days before the first coupon/redemption payment date at 10:00 CET.
A certificate from the respective tax authoritiesTwo business days before the first coupon/redemption payment date at 10:00 CET.
A one-time certificate for Icelandic banks complying with Article 3.2 of Act no. 94/1996Two business days before the first coupon/redemption payment date at 10:00 CET.
A per-payment breakdownTwo business days before coupon/ redemption payment date at 10:00 CET.
Report of internal transfers of beneficial ownershipOn the date of the internal transfer.
Document (Capital Gains)Deadline
One-time certificate for Icelandic securitiesOn the date of the sale.
One-time declaration for tax exemption on sales of Icelandic debt securitiesOn the date of the sale.
Registration of beneficial owner information for Icelandic tax purposesOn the date of the sale.
Certificate of residenceOn the date of the sale.
Letter from the Icelandic tax authoritiesOn the date of the sale.
A certificate from the respective tax authoritiesOn the date of the sale.
A one-time certificate for Icelandic banks complying with Article 3.2 of Act no. 94/1996On the date of the sale.
A per-payment breakdownOn the date of the sale.
A non-exempt transaction reportOn the date of the sale.
Report of internal transfers of beneficial ownershipOn the date of the internal transfer.

Equities
Documents (Capital Gains) Deadline
One-time certificate for Icelandic equities transactionsOn the date of the sale.
Registration request for transaction sales of Icelandic equitiesOn the date of the sale.
Form RSK 5.42On the date of the sale.
Certificate of tax exemptionOn the date of the sale.
Report of internal transfers of beneficial ownershipOn the date of the internal transfer.

Statutory deadline for reclaiming withholding tax

Unless otherwise stipulated in the tax treaty, the statutory deadline for reclaiming withholding tax is six years after the date on which the tax was withheld.

Standard refund deadline

The deadline by which Clearstream Banking must receive the documentation for a standard refund application is at the latest two months before the statutory deadline.

All reclaim applications received after this deadline will be processed by Clearstream Banking on a “best efforts” basis. However, in such cases, Clearstream Banking will apply an extra charge and accepts no responsibility for forms that have not reached the Icelandic tax authorities by the date considered to be the statute of limitations deadline.

When are refunds received?

The estimated time for receiving a refund is on average from 6 to 12 months from the date on which the standard refund application was received by the Icelandic tax authorities. This timeframe can vary depending on when the application was filed and the complexity of the information supplied in the reclaim form.

Notes on tax reclaims

Customers warrant the completeness and accuracy of the information they supply to Clearstream Banking.

It is the customer's responsibility to determine any entitlement to a refund of tax withheld, to complete the forms required correctly and to calculate the amount due. Clearstream Banking is under no obligation to carry out any investigation in respect of such information.

With respect to tax reclaims in general, customers are reminded that Clearstream Banking accepts no responsibility for their acceptance or non-acceptance by the tax authorities of the respective country.

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1. Customers are strongly recommended to verify the deadlines of each event in our tax notifications, as those may be subject to changes upon the request of the issuer.