General information – Clients' eligibility, other market specifics - U.S.A. - CFCL (VestimaPRIME Clients)

Before clients can subscribe to VestimaPRIME, it is essential that they complete the certification process for their accounts during the account opening phase. It is important to note that clients who do not go through this certification procedure will not be entitled to VestimaPRIME.

Withholding tax

By default, any US taxable interest/dividend payment is subject to a 30% FATCA.  Should Clearstream Fund Centre’s direct client provide to Clearstream Fund Centre sufficient information/documentation to evidence that 30% FATCA should not be withheld, the rules of QI regime will apply and tax exemption/reduced tax rate may be granted by Clearstream Fund Centre at source only via account certification. Refund of withholding tax from the IRS and refund requests through Clearstream Fund Centre are not available.

Reporting

Clearstream Fund Center does not assume primary NRA withholding responsibility nor Form 1099 reporting and backup withholding responsibility. As such, it will report US Source income paid to:

• non-U.S. recipients on an IRS Form 1042-S 

Important note:

• For investment funds generating ECI (Effectively Connected Income) , Clearstream Fund Centre Luxembourg asks its client details about the Ultimate Beneficial Owners and will cascade it down to the TA. This way, the fund will report directly to the UBO.
• If the fund does not generate ECI, Clearstream will be receiving the Reports.   

Account segregation

Clearstream Fund Centre clients holding VestimaPRIME Fund Securities must mandatorily segregate their accounts.