Relief at source - eligibility, documentation, deadlines - Hungarian equities
Who can obtain relief at source?
Tax relief at source on dividends from Hungarian equities is available through Clearstream Banking for the following beneficial owners:
Eligible beneficial owners
Rate applicable at source
Individuals resident of Double Taxation Treaty (DTT) countries
Legal entities not resident in Hungary
Legal entities resident in Hungary
The documentation requirements are described below and the templates of the forms are available on our Tax Forms to use section.
All beneficial owners regardless their residency and status and applying for relief at source on Hungarian equities:
- One-Time Certificate for dividend payments on Hungarian equities
An original One-Time Certificate should be duly completed and signed by Clearstream’s customer. It specifies, among other things, whether the customer is the sole beneficial owner of all the Hungarian securities held in the account.
The document must be provided once before the first dividend payment and remains valid until revoked. However, any changes to any details must be communicated in a new One-Time Certificate.
- List of beneficial owners
The List of Beneficial Owners should be completed by Clearstream’s customer.
Legal entities do not need to be disclosed; only the payment details and the breakdown of positions (according to the final beneficial owners' status and residency) should be filled in in order to benefit from relief at source.
Individuals resident in a DTT country must be disclosed in the related section of the document (full name, birth name, date and place of birth, gender, mother’s full maiden name, full address, nationality and passport/card ID number).
The document must be uploaded electronically, before each dividend payment, via the BO Upload facility under “Applications” on the Clearstream Banking website.
In addition, by private individuals residents in a DTT country:
- Certificate of residence
An original Certificate of Residence should be issued in English by the beneficial owner’s local tax authorities in the year for which it is to be used.
The document is valid from the date of the signature until the end of the respective calendar year.
- Declaration of beneficial ownership
An original declaration of beneficial ownership should be completed and signed by the beneficial owner, if it is requested by the applicable DTT.
The document must be provided for each relief at source application.
Deadlines for receipt of documents
In order to benefit from relief at source, eligible beneficial owners should provide the required documentation with the below prescribed deadlines. If any instruction, tax certification or amendment is received after these deadlines, the customer’s entire application for relief at source will be rejected.
List of Beneficial Owners (LBO)
At the latest the record date by 10:00 CET.
At the latest two business days before the record date by 18:00 CET.