General information - types of Vestima fund securities, deadlines, other market specifics - Estonia - CFCL

The eligible Vestima fund securities issued in Estonia are as follows:

• Contractual fund: Pool of assets established from the money collected through the issue of units or other assets and assets acquired through investment of money and which is jointly owned by unitholders. A fund manager conducts transactions with the assets of a contractual fund in its own name and for the common account of all the unitholders.
• Public limited Fund: Fund founded as a public limited company pursuant to the Investment Funds Act and the provisions of the Commercial Code apply to the foundation, operation and dissolution thereof.
• Limited Partnership Fund: Fund founded as a limited partnership pursuant to the Invest Funds Act and the provision of the Commercial Code apply to the foundation, operation and dissolution thereof. A limited partnership fund may manage its own assets or enter into a management contract with a fund manager.

These funds can be further classified:

• UCITS: Funds that comply with the requirements provided for in Directive 2009/65/EC of the European Parliament and of the Council. Shares or Units of UCTIS Funds may be publicly offered in all EEA Member States and shall be redeemed at the request of unitholders or shareholders.
• Alternative Investment Fund (AIF): Any fund which is not a UCITS, pension fund or defined-benefit occupational pension fund. The subcategories of alternative investment funds are:
  - Small Alternative Fund
  - European Venture Capital Fund
  - European Social Entrepreneurship Fund
  - Closed-Ended Fund
• Feeder fund: Fund which assets are invested to the extent of at least 85% in the units or shares of a master fund or placed in the master fund in any other manner.
• Master fund: Fund that has at least one feeder fund among its unitholders or shareholders, not a feeder fund itself and does not hold any units or shares of a feeder fund.
• Foreign fund: Fund which has been established or founded pursuant to foreign law.

Withholding tax Services

Applicable default withholding tax rates

The default rates of withholding tax applicable in Clearstream Fund Centre on income paid on Estonian Vestima fund securities are as follows:

• 0/7% on dividends from investment funds:
  - 0% if the dividend is paid from irregular profit distribution that is subject to 20% income tax;
  and
  - 7% if the dividend is distributed by an Estonian investment fund subject to the lower corporate income tax rate of 14%).

Holding restrictions

please refer to the ‘Holding Restrictions – Investment Funds’ section of the Clearstream Fund Centre Market Guide - Estonia.

Capital Gains Tax

There is no capital gains tax withheld through Clearstream Fund Centre on Vestima fund securities held in Clearstream Fund Centre. Capital gains tax may however be payable on specific gains. Clearstream Fund Centre does not assist in this regard. Please consult your tax advisor for further information.

Stamp Duty

There is no stamp duty withheld through Clearstream Fund Centre on Vestima fund securities held in Clearstream Fund Centre. Stamp duty may however be payable on specific transactions. Clearstream Fund Centre does not provide assistance in this regard. Please consult your tax advisor for further information.

Deadlines for relief at source, quick refund and standard refund

Relief at source

In order to benefit from tax relief at source on Estonian Vestima fund securities, clients must ensure that the accurate documentation is submitted by the following deadlines:

Quick refund

In order to benefit from quick refund on Estonian Vestima fund securities clients must ensure that the accurate documentation is submitted by the following deadlines:

The estimated time for receiving a refund is up to 30 calendar days from the date on which Clearstream Fund Centre receives the certified documents for quick refund, although this can vary depending on the issuer and when the application is filed.

Standard refund

The statutory deadline for reclaiming withholding tax using the standard refund procedure is three years following the dividend payment date that was subject to tax.

The deadline by which Clearstream Fund Centre must receive the documentation for a standard refund, at the latest, three months before the statutory deadline. All standard refund applications received after this deadline will be processed by Clearstream Fund Centre on a “best-efforts” basis. However, in such cases, Clearstream Fund Centre will apply an extra charge and accepts no responsibility for forms that have not reached the Estonian Tax Authorities by the date considered being the statute of limitations deadline.

For tax reclaims, you are reminded that Clearstream Fund Centre accepts no responsibility for their acceptance or rejection by the tax authorities of the respective country. It is the client’s responsibility to determine any entitlement to a refund, to complete the forms required correctly and to calculate the amount due.

When are refunds received?

The estimated time for receiving a refund is 60 calendar days from the date on which Clearstream Fund Centre receives the certified documents for standard refund, although this can vary depending on when the application is filed, and the complexity of the information supplied in the reclaim form.