General tax information - types of Vestima fund securities, deadlines, other market specifics - Canada

Types of Vestima fund securities eligible in Clearstream Fund Centre

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

Trust instruments (trust units);

Withholding Tax Services

Trust instruments	Holding restriction?	Withholding tax rate	Relief at source	Quick refund	Standard refund
	Yes	25%
Residents of a Double Taxation Treaty (DTT) country who qualify as non-resident according to Form NR301 (General)			Yes	Yes	Yes
Resident of a DTT country who qualify as non-resident according to Form NR302^a (Partnerships)			No	No	Yes
Resident of a DTT country who qualify as non-resident according to Form NR303^a (Hybrid entities)			No	No	Yes
Tax-exempt entities			No	No	Yes

a. Partnerships (Form NR302) and Hybrid entities (Form NR303) are not considered eligible and must apply to reclaim withholding tax via the standard refund procedure instead.

Swiss intermediaries

Financial intermediaries resident in Switzerland and holding Canadian trust instruments on behalf of final beneficial owners are entitled to the application of withholding tax on such holdings according to the Double Taxation Treaty (DTT) between Canada and Switzerland and under the terms of Canadian Information Circular IC76-12.

Such Swiss intermediaries must be fully aware of and compliant with all of their obligations as stated in the DTT and in such terms.

Relief at source and quick refund are available to Clearstream Fund Centre clients who act as Swiss Intermediary for final beneficial owners of Canadian trust instruments.

Applicable default withholding tax rates

The default rates of withholding tax applicable in Clearstream Fund Centre on income paid on Canadian trust instruments are as follows:

25 % on trust income from trust instruments.
N.B.: It is the client's responsibility to ensure that final beneficial owners are eligible for the tax rates applied, including the Clearstream Fund Centre default rates. It is the responsibility of the client to comply with this obligation. Neither Clearstream Fund Centre nor its local depository has any direct or indirect liability towards the Canadian authorities in this regard.

Holding restriction

Please refer to the Holding Restrictions for Investment Funds in Canada section of the Clearstream Fund Centre Market Guide - Canada.

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 assist in this regard. Please consult your tax advisor for further information.

Statutory deadline for reclaiming withholding tax

The statutory deadline for reclaiming withholding tax using the standard procedure is two years after the end of the calendar year in on which the dividend was distributed.

CFCL deadline for standard refund applications

The deadline by which Clearstream Fund Centre must receive the documentation (by mail) for a standard refund application is, 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 Canadian Tax Authorities by the date considered being the statute of limitations deadline.

CFCL deadline for quick refund applications

The deadline for reclaiming withholding tax on Canadian Vestima fund securities using the quick refund through Clearstream Fund Centre will be communicated on an annual basis via dedicated client announcement.

Notes on tax reclaims

Clients warrant the completeness and accuracy of the information they supply to Clearstream Fund Centre.

With respect to tax reclaims in general, clients are reminded that Clearstream Fund Centre accepts no responsibility for their acceptance or non-acceptance by the tax authorities of the respective country. It is the client's responsibility to determine any entitlement to a refund of tax withheld and to complete the forms required correctly and calculate the amount due. Clearstream Fund Centre is under no obligation to carry out any investigation in respect of such information.

When are refunds received?

The estimated time for receiving a refund can vary depending on the time that the application is filed, and the complexity of the information supplied in the reclaim form. Clearstream Fund Centre has collected information from sources considered reliable but does not guarantee the accuracy of the timings presented.

Standard refund:

The estimated time for receiving a standard refund is 18-24 months from the date on which Clearstream Fund Centre receives the certified documents.

Quick refund:

The estimated time for receiving a quick refund is two weeks from the date on which Clearstream Fund Centre receives the request.

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