Form descriptions - Immediate and quick refund - Spanish debt securities (securities held in CBF)

06.11.2020

Information is provided here about the forms and their use in relation to the procedures for immediate and quick refund of withholding tax on income from Spanish debt securities.

There are different documentation requirements depending on the status of the beneficial owner and on the type of the domestic Spanish debt securities.

1. Domestic bonds subject to RD 1145/2011

  • All customers holding such bonds must submit, for the first impacted interest payment or quick refund application:
    • One-Time Certificate for Domestic Spanish Debt Securities subject to RD 1145/2011.
  • Customers holding such bonds on behalf of beneficial owners who are eligible for tax exemption, but also on behalf of beneficial owners that are Spanish individuals or are not willing to disclose their positions, must submit, in addition to the One-Time Certificate, for each impacted interest payment or quick refund application:
    • Breakdown of Holdings.
  • Customers holding such bonds on behalf of beneficial owners who are Spanish residents must submit, in addition to the One-Time Certificate and, if applicable, the Breakdown of Holdings, for each impacted interest payment or quick refund application:
    • List of Spanish Entities.

2. Domestic corporate bonds not subject to RD 1145/2011

  • Beneficial owners resident in a DTT country or in an EU/EEA member country other than Spain, and not resident in a tax haven or retrieving the income through an intermediary in a tax haven, must submit:
    • Annual certificate of residence per beneficial owner issued by the local tax authorities of the beneficial owner, it is recommended to provide it double-sided; and
    • List of beneficial owners per payment with the name, address and holding of the beneficial owners.
  • Spanish resident corporate income tax payers holding corporate bonds issued after 1 January 1999 must submit:
    • List of beneficial owners per payment with the name, address, fiscal ID and holding of the Spanish corporations

3. Supranational organisations and foreign central banks - standing instruction

  • Supranational organisations tax-exempt as per “consultation” list:
    • Spanish Securities - Standing Instruction for International or Supranational Organisations and Central Banks.
  • Supranational organisations tax-exempt based on a “Convenio Constitutivo”:
    • Spanish Securities - Standing Instruction for International or Supranational Organisations and Central Banks; and
    • A copy of the “Convenio Constitutivo” confirming tax-exempt status.
  • Foreign central banks:
    • Spanish Securities - Standing Instruction for International or Supranational Organisations and Central Banks; and, upon request
    • A copy of the By-laws or any other official document proving central bank status.

Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Spanish debt securities.

To obtain an immediate refund or apply for a full quick refund, the following documentation is required depending on the types of securities:

1. Domestic bonds subject to RD 1145/2011

One-Time Certificate for Domestic Spanish Debt Securities

The One-Time Certificate must be submitted, for all categories of debt securities (private and public) that fall under the application of RD 1145/2011, before the first applicable interest payment date or with the first quick refund application, and must state that the customer holds the securities in one of the following sets of circumstances:

a.

Exclusively for itself or for one single beneficial owner eligible for tax exemption. By ticking the first box, tax exemption is applied by default at source on all further interest payments and no further certificates are required.

If the Clearstream Banking customer is a Spanish financial institution, the details of the Clearstream Banking customer are required (even if the securities are held on behalf of a single beneficial owner that is a Spanish corporation).

If the Clearstream Banking customer is a non-resident of Spain but holds the securities on behalf of a single beneficial owner that is a Spanish corporation, the final beneficial owner’s details must be provided.

By ticking and completing the first section, the customer authorises Clearstream Banking to forward its own or the beneficial owner’s details and holdings to the Spanish authorities for each interest payment to the customer’s account, in order to comply with the reporting obligations.

OR

b.

Exclusively on behalf of several beneficial owners (including itself, if applicable) that are non-residents of Spain for tax purposes.

By ticking the second box, tax exemption is applied by default at source on all further interest payments and no further certificates are required.

OR

c.

Exclusively on behalf of several beneficial owners (including itself, if applicable) that are Spanish corporations.

By ticking the third box, tax exemption is applied by default at source on all further interest payments.

In addition to the One-Time Certificate, the List of Spanish Entities is required per interest payment, as explained below. Furthermore, if the Clearstream Banking customer or other intermediary in the chain is a Spanish financial institution, the details of the Clearstream Banking customer/Spanish intermediary are required (even if it holds the securities on behalf of beneficial owners who are Spanish corporations).

If the Clearstream Banking customer and the rest of the intermediaries are non-Spanish residents but hold the securities on behalf of beneficial owners that are Spanish corporations, the details of the final beneficial owners must be provided in the List of Spanish Entities.

OR

d.

On behalf of beneficial owners that are:
 
  • Eligible for tax exemption as per b. and c. above; or
  • Spanish individuals; or
  • Not willing to disclose their positions.

In addition to the One-Time Certificate, the customer is required to submit, before each interest payment, a Breakdown of Holdings and the List of Spanish Entities as explained below. Furthermore, if the Clearstream Banking customer or other intermediary in the chain is a Spanish financial institution, the details of the Clearstream Banking customer/Spanish intermediary are required (even if it holds the securities on behalf of beneficial owners that are residents of Spain).

If the Clearstream Banking customer and the rest of the intermediaries are non-residents of Spain but hold the securities on behalf of beneficial owners that are residents of Spain, the details of the final beneficial owners must be provided in the List of Spanish Entities.

How many are provided?

One per Clearstream Banking account.

Who completes it?

Customer.

How often is it provided?

Once. Valid until revoked.

When is it provided?

By the immediate or quick refund deadline for the respective paying agent.

Copy or original?

Original required.

Breakdown of Holdings

A Breakdown of Holdings must be submitted, if the customer ticked the fourth box in the One-Time Certificate (that is, the securities are held on behalf of both exempt and non-exempt beneficial owners), and must indicate:

For immediate refund via SWIFT (formatted MT565 message), CreationOnline or Xact Web Portal message (Please refer to the Customer Handbook for full formatting requirements):

  • Customer account number;
  • ISIN code;
  • Event Corp ID;
  • Instructed quantity (according to the eligible balance in the account);
  • Tax rate to apply: to be included in field :92A::TAXB// for SWIFT users or tax rate field for CreationOnline and Xact Web Portal users;
  • Wording, as applicable: “non-Spanish residents” or “Spanish residents”; Note: instructions submitted for Spanish residents without disclosure of the Intermediary or Final BO in the narrative (CreationOnline or Xact Web Portal message), or in field 70E::INTR// (SWIFT message), or without disclosure of the list of Spanish entities (LBO), will be rejected.
  • Customer’s full contact details.

For quick refund via SWIFT MT599/MT568 or free-format CreationOnline or Xact Web Portal message:

  • Customer account number;
  • ISIN code;
  • Event Corp ID or Income Payment Date;
  • The customer’s total holding;
  • The total position held on behalf of beneficial owners that are non-residents of Spain
  • The total position held on behalf of Spanish corporations;
  • The total position held on behalf of Spanish individuals;
  • The total position of undisclosed beneficial owners.

Note: The default tax rate will be applied to uninstructed (undisclosed) holdings.


All these declared positions must be accurate at 19:00 CET on the relevant record date (that is, one business day before payment date). If there is a discrepancy between the declared positions and the customer’s total holding visible in Clearstream Banking’s books, the customer’s application for tax exemption will be rejected and, consequently, the maximum standard tax rate will be applied.

Furthermore, if no Breakdown of Holdings is received by Clearstream Banking by the prescribed deadline, the customer’s total holding will be considered as uncertified and, as a consequence, the maximum standard tax rate will be applied.

How many are provided?

One per Clearstream Banking account.

Who completes it?

Customer.

How often is it provided?

Per interest payment or quick refund application.

When is it provided?

By the immediate or quick refund deadline for the respective paying agent.

Copy or original?

For immediate refund: via SWIFT (formatted MT565 message), CreationOnline or Xact Web Portal message

For quick refund: Via SWIFT MT599/MT568 for or CreationOnline or Xact Web Portal free-format message

List of Spanish Entities

A List of Spanish Entities must contain, per entity, the ISIN, name of security, payment date, full name of the Spanish beneficial owner or of the Spanish intermediary, full fiscal address, tax identification number (CIF/NIF), status (corporation/individual - a new requirement), nominal amount, total gross coupon proceeds and total tax withheld and should specify whether the disclosed entity is the final beneficial owner or a Spanish intermediary.

If a Spanish intermediary holds securities for both Spanish individuals and Spanish corporations, two lines must be completed under its name: the first for the cumulated taxable amount and the second for the cumulated tax exempt amount.

The information included in the List of Spanish Entities must be accurate at 19:00 CET on the relevant record date.

Important note:

The List of Beneficial Owners must be uploaded to the Clearstream Banking website under Asset Services / Tax Services / Upload BO List. This means of communication is mandatory in order to be able to apply for immediate or quick refund.

How many are provided?

One per Clearstream Banking account.

Who completes it?

Customer.

How often is it provided?

Per interest payment or quick refund application.

When is it provided?

By the immediate or quick refund deadline for the respective paying agent.

Copy or original?

Uploaded via Clearstream Banking's online Upload BO List function.

2. Domestic corporate bonds not subject to RD 1145/2011

Certificate of Residence

For each beneficial owner resident in a country that has a Double Taxation Treaty (DTT) in force with Spain, a valid Certificate of Residence must be issued. The Certificate of Residence is considered as valid if:

  • It covers the payment date - its validity is for one year from its issuance date and, if it includes a specific tax year, it will also be valid for that year.
  • It is issued by the local tax authorities of the beneficial owner’s country of residence.
  • It refers to the article of the relevant DTT granting the reduced rate.
  • It is duly signed and stamped by the local tax authorities of the beneficial owner’s country of residence.
  • It is either in Spanish or in English.
  • It is presented in its original form.
  • It is presented double-sided, Clearstream will not take any responsibility if the form is not double-sided and rejected by the depository.

Moreover, the Certificate of Residence may be required by certain issuers on a per-payment basis.

How many are provided?

One per beneficial owner.

Who completes it?

Beneficial owner’s local tax authorities.

How often is it provided?

Annually.

When is it provided?

(Immediate refund) at least two business days before the respective payment, by 10:00 CET.
(Quick refund) at the latest, on the last business day of the month in which the interest payment took place, by 10:00 CET.

Copy or original?

Original required.

List of Beneficial Owners

A List of Spanish Entities must contain the ISIN, name of security, payment date, full name of the beneficial owner, full fiscal address, tax identification number for Spanish residents, nominal amount and total tax withheld.

Important note:

The List of Beneficial Owners must be uploaded to the Clearstream Banking website. This means of communication is mandatory in order to be able to apply for immediate or quick refund.

How many are provided?

One per Clearstream Banking account.

Who completes it?

Customer.

How often is it provided?

Per interest paymen or quick refund application.

When is it provided?

(Immediate refund) at least two business days before the respective payment, by 10:00 CET.
(Quick refund) at the latest, on the last business day of the month in which the interest payment took place, by 10:00 CET.

Copy or original?

Uploaded via Clearstream Banking's online Upload BO List function.

3. Supranational organisations and central banks

Spanish Securities - Standing Instruction for International or Supranational Organisations and Central Banks

For the standing instruction, the customer is required to submit, once and before the first income payment, the Spanish Securities - Standing Instruction for International or Supranational Organisations and Central Banks certifying, among other things, that the customer holds the Spanish securities exclusively as proprietary assets.

In addition to this Standing Instruction certificate, the following documentation may be required as indicated:

  • For supranational organisations that have signed a “Convenio Constitutivo” with Spain:
    • A copy of the “Convenio Constitutivo” confirming tax-exempt status.
  • For foreign central banks:
    • A copy of the By-laws or any other official document proving your central bank status.

How many are provided?

One per beneficial owner.

Who completes it?

Beneficial owner.

How often is it provided?

Once. Valid until revoked.

When is it provided?

By the immediate or quick refund deadline for the respective paying agent.

Copy or original?

Original required.