Quick refund - eligibility, documentation, deadlines - Polish debt securities
Reference
Who can obtain quick refund?
Quick refund is available through Clearstream to the following beneficial owners depending on the type of debt security (excluding Euro-denominated mortgage bonds – quick refund is not offered on income payments derived from EUR-denominated mortgage bonds):
T-bonds | T-bills, BGKsa, BFGsb, corporate and municipal bonds, T-bills | ||
Foreign legal entities | Central banks | 0% | DTT rate |
Governments, administrative subdivisions and local authorities | DTT rate | ||
Banks and investment firms (as defined in EU MiFiD regulations) | DTT rate | ||
Supranational or international organisations of which Poland is a member | 0% | ||
Entities mentioned in DTT (example of these entities in DTT Poland/Singapore) | DTT rate | ||
Insurance companies | DTT rate | ||
EU investors with substantial holding | 0% | ||
Pension Funds and Investment Funds | EU/EEA pension funds and investment funds | 0% | |
DTT resident pension funds and investment funds | DTT rate | ||
a. Bank Gospodarstwa Krajowego (BGK) bonds
b. Bankow Fundusz Gwarancyjny (BFG) bonds
Documentation requirements
The following certification must be provided by the stated deadline to allow the depository to perform the due diligence and confirm the eligibility of the beneficial owner for the quick refund.
Upon submission of the relevant documentation, the depository will perform a due-diligence analysis and confirm via email whether a reduced tax rate (or tax exemption) can be applied.
The documentation requirements are described below and the templates of the forms are available under Tax Forms to use - Poland section.
1. Quick refund documentation for Polish debt securities (other than T-bonds and EUR-Mortgage bonds)
The documentation requirement depends on the type of entity as follows:
a) FOR ALL BENEFICIAL OWNERS
Per-payment instruction
Per-payment instruction per each tax rate provided via Swift (formatted MT565) or Xact Web Portal Message that includes:
- Client Account Number
- ISIN
- Corporate Action Reference ID
- Payment Date
- The total holding of securities
- Full name, fiscal address, and TIN number of the Beneficial Owner
- Country of Residence for Tax Purposes
- Tax rate to apply
- Holding for which the reduced/exempt tax rate applies
- Purchase price
The beneficial owner per-payment instruction must be provided before each interest payment.
One-time certificate (OTC) for debt securities
The original One-time certificate is completed and duly signed by the client. It specifies among other things whether the client is the sole beneficial owner of all the debt securities held in the account. It must be provided once before the first income payment.
It remains valid for 5 years. Any changes to any details must be communicated in a new OTC.
Power of Attorney – Omnibus account
A Power of Attorney should be provided if a third party is completing the Declaration of Beneficial Ownership. The document must be provided once before the first applicable income payment and remains valid until revoked.
Specificity for EU investors with substantial holding
For EU investors with a substantial holding, all requests will be assessed on a case-by-case basis with current tax regulations and other requirements taken into account. There is no standard set of documentation.
b) IN ADDITION, DEPENDING ON THE TYPE OF BENEFICIAL OWNER
Type of BO | Documentation required (English language only) |
Foreign central banks |
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Foreign banks and investment firms (as defined in EU MiFiD regulations) |
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Insurance Companies |
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Entities specifically mentioned in the DTT signed between Poland and their country of residence |
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Foreign governments, foreign administrative sub-divisions and foreign local authorities |
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Supranational or international organisations of which Poland is a Member |
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Pension Funds and Investment Funds |
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Important Note: Investors who obtained a ruling from the Polish Tax Authorities on the applicability of the DTT rates must provide a copy of such ruling together with their certification for review and evaluation. Then an original or notarised copy of such ruling will be required.
Power of Attorney – Omnibus account
A Power of Attorney should be provided if a third party is completing the Declaration of Beneficial Ownership. The document must be provided once before the first applicable income payment and remains valid until revoked.
2. Quick refund documentation for Polish T-bonds
For ALL T-BONDS BENEFICIAL OWNERS
Per-payment instruction per each tax rate provided via Swift (formatted MT565) or Xact Web Portal Message that includes:
- Client Account Number
- ISIN
- Corporate Action Reference ID
- Payment Date
- The total holding of securities
- Full name, Fiscal address, and TIN number of the Beneficial Owner
- Country of Residence for Tax Purposes
- Tax rate to apply
- Holding for which the reduced/exempt tax rate applies
- Purchase price
The beneficial owner’s per-payment instruction must be provided before each interest payment.
- One-time certificate (OTC) for Treasury bonds
The original One-time certificate is completed and duly signed by the client. It specifies among other things whether the client is the sole beneficial owner of all treasury bonds held in the account. It must be provided once before the first income payment.
It remains valid for 5 years. Any changes to any details must be communicated in a new OTC.
Deadlines for receipt of documents1
In order to benefit from quick refund, eligible beneficial owners should provide the required documentation within the below prescribed deadlines. If any instruction, tax certification or amendment is received after these deadlines, the client's entire application will be rejected.
Quick refund | Deadline for receipt by Clearstream |
Original certificates | At the latest, four business days before the last business day of the month in which the payment was made, by 10:00 CET. |
Per payment instruction | At the latest, one business day before the last business day of the month in which the payment was made, by 10:00 CET. |
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1. Clients are strongly recommended to verify the deadlines of each event in our tax notifications, as those may be subject to changes upon the request of the issuer.
