Form descriptions - Relief at source - Irish equities

25.07.2019

Certification requirements for tax exemption

In order to flag their dedicated account as tax exempt and consequently obtain gross payments on dividends from Irish domestic equities, customers must provide the following certification before the transfer of the impacted positions on the respective account:

One-time certificate for tax exemption on Irish domestic equities certifying that the Clearstream Banking direct customer:

  • has been authorised as Qualifying Intermediary (QI) by the Irish Revenue Commissioners and holds Irish equities on behalf of a qualifying non-resident person or an excluded Irish person; or
  • is the beneficial owner of the Irish equities and is a qualifying non-resident person, an excluded Irish person, or a supranational organisation. 

Who completes it?

Customer.

How often is it provided?

Once. Valid until revoked.

When is it provided?

Before execution of the first trade in Irish equities to be settled in Clearstream Banking.

Copy or original?

Original required.

CBL customer is a Qualifying Intermediary (QI)

Proof of Qualifying Intermediary (QI) status

A copy of the document delivered by the Irish Revenue Commissioners and proving the QI status.

Who completes it?

Irish Revenue Commissioners.

How often is it provided?

Once. Valid until revoked.

When is it provided?

Before execution of the first trade in Irish equities to be settled in Clearstream Banking.

Copy or original?

Copy required.

Important note: Customers are responsible to ensure that for each final beneficiary applying for tax exemption, valid Irish DWT forms are in the possession of the QI having the positions of the final beneficiary in its books. These forms must be provided upon request of the Irish authorities. Furthermore, please note that the Irish tax authorities maintain the right to request additional information or forms at any time. Customers being QI in Ireland and beneficial holders are responsible and liable for any tax relief, penalties, and for maintenance and provision of all materials supporting the tax exemption.

CBL customer is the final beneficial owner and eligible for tax exemption

Depending on its status and residency, one of the following certificates must be provided together with the One-time certificate for tax exemption on Irish domestic equities:

For excluded Irish persons:

Form V3: Exemption from DWT for Certain Persons Resident in Ireland in respect of Relevant Distributions 

or

Declaration to be made by an Irish Exempt Unit Trust, for the purpose of Exemption from Dividend Withholding Tax (DWT)

or

Declaration to be made by an Irish Personal Retirement Savings Account (PRSA) Administrator for the purpose of Exemption from Dividend Withholding Tax (DWT)

Who completes it?

Beneficial owner or its legal representative.

How often is it provided?

Once. Valid until the excluded person notifies CBL as QI that they have ceased to be an excluded person.

When is it provided?

Before execution of the first trade in Irish equities to be settled in Clearstream Banking.

Copy or original?

Original required.

For qualifying non-resident persons:

Form V2A: Exemption from DWT for a Qualifying Non-Resident Individual

For individuals: Non-Resident Form V2A, declaring that:

  • They are neither resident nor ordinarily resident in Ireland;
  • They are beneficially entitled to the relevant distributions;
  • They are a qualifying non-resident person for the purposes of Chapter 8A of Part 6 of the Taxes Consolidation Act, 1997;
  • Their tax authorities have completed Section 2 (Certificate of Residence) or, where it is not practical for the tax authorities to use the Certificate of Residence in Section 2, a letter from the tax authorities to the same effect, with a translation in English if applicable; and
  • They will notify the relevant payor in writing if they cease to be a qualifying non-resident person.

or

Form V2B: Exemption from DWT for a Qualifying Non-Resident Company

For companies: Non-Resident Form V2B, declaring that:

  • They are neither resident nor ordinarily resident in Ireland;
  • They are beneficially entitled to the relevant distributions;
  • They are a qualifying non-resident company for the purposes of Chapter 8A of Part 6 of the Tax Consolidation Act, 1997; and
  • They will notify the relevant payor in writing if they cease to be a qualifying non-resident company.

or

Form V2C: Exemption from DWT for a Qualifying Non-Resident Person (not being an individual or a company)

For bodies of persons (not being company): Non-Resident Form V2C, declaring that:

  • They are neither resident nor ordinarily resident in Ireland;
  • They are beneficially entitled to the relevant distributions;
  • They are a qualifying non-resident body of persons in the meaning of Chapter 8A of Part 6 of the Taxes Consolidation Act 1997;
  • Their tax authorities have completed Section 2 (Certificate of Residence);
  • They will notify the relevant payor in writing if they cease to be a qualifying non-resident person; and
  • In the case of a discretionary trust, they have attached a completed Section 3 in which the trustee declares that it is a discretionary trust and confirms that a list of the names and addresses of the settlers and beneficiaries of the trust is attached to the declaration.

Who completes it?

Beneficial owner or its legal representative & Tax authorities of the qualifying non-resident person.

How often is it provided?

Once every 5 years. Valid from the date of issue until 31 December in the fifth year following the year in which the certificate was issued.

When is it provided?

Before execution of the first trade in Irish equities to be settled in Clearstream Banking.

Copy or original?

Original required.

For qualifying non-resident persons, the declaration must, where appropriate be supported by documentary evidence. The supporting documentation is as follows:

A declaration made by a non-resident person (not being a company) must be accompanied by a certificate of residence from the tax authority in the country of the person’s residence.

A declaration by the trustee or trustees of a non-resident discretionary trust must be accompanied by:

  • a certificate given by the tax authority of the country in which the trust is, by virtue of the law of that territory, resident for the purposes of tax, certifying that the trust is resident in that territory;
  • a certificate from the trustee or trustees showing the names and addresses of the settlers and beneficiaries of the trust; and
  • a certificate from Revenue indicating that they have seen the certification and have noted its contents.

For supranational organisations:

  • a letter of confirmation of exemption from the Irish Revenue Commissioners.

Who completes it?Irish Revenue Commissioners.
How often is it provided?Once. Valid until revoked.
When is it provided?Before execution of the first trade in Irish equities to be settled in Clearstream Banking.
Copy or original?Copy.

Validity of the tax certificates

Exemption declarations for resident (excluded) persons remain valid until such time as the excluded person notifies CBL as QI that they have ceased to be an excluded person.

Exemption declarations for qualifying non-resident persons remain valid for a maximum period of 6 years. This period of validity is determined by the date on which the relevant certificates accompanying the exemption declarations are issued. The legislation confirms that these certificates remain valid for the period from the date of issue until 31 December in the fifth year following the year in which the certificate was issued, thus providing for a maximum period of validity of six (6) years where a certificate was issued on 1 January in a particular year.

Important note: According the DWT Technical Guidance Notes, each QI is obliged to obtain, validate and keep the original tax certification proving the eligibility for tax exemption, to be submitted to the Revenue upon request. Consequently, the certificates provided by customers in the past end their validity on 29 March 2019 and any tax exemption will be granted as of 1 April 2019 only based on new original and valid certification.