Other Icelandic debt securities - relief at source - eligibility, documentation, deadlines etc.

Taxable debt securities

Withholding tax

There is no withholding tax withheld through Clearstream on taxable debt securities held in Clearstream. Withholding tax may however be payable on interest and redemption payments. Clearstream does not assist in this regard. Please consult your tax advisor for full information.

Relief at source

Documentation requirements

Clients are requested to provide the following documentation depending on their own residency and the residence of the underlying beneficial owners.

• Clearstream clients that are non-residents and holding for non-resident beneficial owners

No action is required by the Clearstream client, as Clearstream applies by default 0% withholding tax on interest and redemption payments from the above-mentioned debt securities.

• Clearstream clients that are Icelandic Banks complying with Article 3.2 of Act no. 94/1996: 
  • A One-Time Certificate for Icelandic Banks complying with Article 3.2 of Act no. 94/1996, which is valid until revoked.

Clients that are Icelandic Banks complying with Article 3.2 of Act no. 94/1996 will automatically receive income payments with 0% withholding tax. Certification is however requested from such clients for reporting purposes to ensure such entities are reported to the RSK as Icelandic recipients instead of non-residents.

Note: Such entities are considered as Icelandic tax withholding agents, implying that they must withhold the appropriate tax amounts from their respective clients, and report these amounts to the Icelandic Tax Authorities.

Deadlines for receipt of the required documentation by Clearstream

Interest and redemption payments

Important note: Clearstream reminds clients that, in the absence of any certification from clients that are Icelandic banks, Clearstream will report to the RSK interest and redemption payments as being paid to non-resident clients holding for non-resident beneficial owners only.

Capital gains tax

There is no capital gains tax withheld through Clearstream on taxable debt securities held in Clearstream. Capital gains tax may however be payable on specific gains. Clearstream does not assist in this regard. Please consult your tax advisor for full information.

Important note:

Clients are reminded that In Iceland, any gains realised on debt securities are considered for tax purposes as “interest payments”.

Disclosure requirements

To comply with Icelandic disclosure and reporting requirements, Clearstream is requested to provide:

• on a monthly basis, the name and transaction details of the Clearstream client to the Icelandic tax authorities (RSK); and
• upon request, disclosure of the positions of the ultimate beneficial owners on a specified date in a given security to the tax or any other relevant authorities in Iceland.

Clients are kindly requested to refer to the CBL Disclosure Requirements - Iceland for full details of the disclosure requirements.