Austria: Additional tax reclaim requirement

Effective

immediately

the Austrian Tax Authorities (ATA) have provided information about the new and additional document “Ersuchen um Ergänzung” (Request for Additional Information) required in relation to reclaims of withholding tax by or on behalf of beneficial owners.

Impact on customers

The ATA may contact customers directly to complete the new “Request” document and submit it to them within a certain time frame.

We will not receive a copy of the “Request”. If the customer does not duly complete and return the document to the ATA in good time, the ATA will reject the reclaim application.

If the reclaim application is rejected by the ATA, the customer can reapply with the appropriate supporting documentation, provided that this is within the time limit established for a Double Taxation Treaty (DTT) refund (that is, within five years from the end of the year of in which the respective income payment was made).

The new “Request” document must be submitted in German. Attached below is a German and English version of the document provided by the ATA.

The ATA have informed us that they will soon publish notes on this subject explaining what kind of information they will accept in response to their request for information.

The current understanding of the ATA is that the "wirtschaftliche Eigentümer" (beneficial owner) is the person who, on dividend entitlement date, held the shares booked (settled) in his account. The explanatory notes that the ATA have said they will provide will contain the definitions of their understanding (for example, "wirtschaftliche Eigentümer" / beneficial owner etc.).

Documentation requirements for standard refund

Beneficial owners that are not foreign investment funds

For reclaims through Clearstream Banking¹ of tax withheld on Austrian securities by or on behalf of beneficial owners that are not foreign investment funds, the following documents must be completed and submitted:

• Form ZS-RE1 or ZS-RD1 (Claim for repayment of Austrian Withholding Tax);
• Form ZS-RE1A or ZS-RD1A (Supplementary sheet A);
• Power of Attorney;
• Credit Advice;
• Ersuchen um Ergänzung (Verf 29);
• Letter of Request to Clearstream Banking for Reclaim of Austrian Withholding Tax.

Beneficial owners that are foreign investment funds

For reclaims through Clearstream Banking of tax withheld on Austrian securities by or on behalf of foreign investment funds, documents must be completed and submitted according to the constitution of the fund's investor base, as follows:

• Funds with 100 or more investors, each of which holds less than 10% of the fund:
  • Claim for Repayment from the foreign investment fund company;
  • Declaration of Widely Held Foreign Investment Funds, indicating the percentage of units held by investors entitled to the benefits of a DTT with Austria (“good investors”). 
• Funds with 100 or more investors, one or more of which hold 10% or more of the fund:
  • Claim for Repayment from the foreign investment fund company;
  • Declaration of Widely Held Foreign Investment Funds, indicating the percentage of units held by good investors;
  • Certificate of Residence for each investor holding 10% or more of the fund. 
• Funds with 10-99 investors:
  • Claim for Repayment from the foreign investment fund company;
  • Certificate of Residence for each investor, regardless of holding percentage. 
• Funds with 1-9 investors:
  • Claim for Repayment from each investor (not from the foreign investment fund company).
    For example: If each of two investors in an investment fund of 1000 shares holds 50% (500 shares), the ATA will require:
    • An individual Claim for Repayment from each investor, each regarding a 50% holding;
    • Proof of the full 100% dividend and a Declaration of Widely Held Foreign Investment Funds from the investment fund company.

Important notes:

Each Credit Advice must be signed and stamped and must be submitted in the original; the ATA will no longer accept copies.

Each reclaim application must include a Declaration of Widely Held Foreign Investment Funds but, based on information from the ATA, such Declaration can be provided annually in the original and copies can be used for each refund thereafter.

Details are published in our Market Taxation Guide - Austria.

Further information

For further information, customers may contact the Clearstream Banking Tax Help Desk on:

or Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).