Greece: Amended tax rates on interest from Greek bonds

As of

1 January 2014

the following tax rates will be applicable on interest payments derived from Greek government and corporate bonds:

This follows amended Law 4172/2013.

Impact on customers

Corporate bonds

No withholding tax is expected to be applied on interest payments from Greek corporate bonds on assets held via Clearstream Banking¹. However, final beneficial owners that may be liable to withholding tax will be responsible for declaring the withholding tax to their local tax authorities. Beneficial owners should consult with their tax advisor on this matter.

Furthermore, in line with the current holding restriction, customers are reminded that they may not hold Greek corporate bonds in Clearstream Banking, whether they are themselves Greek tax residents and beneficial owner of such corporate bonds or they hold such corporate bonds on behalf of a beneficial owner that is Greek tax resident.

Government bonds

No withholding tax is expected to be applied on interest payments from Greek government bonds held via Clearstream Banking for beneficial owners.

Customers are reminded that the following Greek residents are responsible for withholding, reporting and remitting any taxes to the Greek Tax Authorities in accordance with Greek law:

• Greek customers acting as intermediary;
• Greek customers acting as "Greek beneficial owner" (proprietary assets); and
• Greek beneficial owners holding via a non-Greek customer.

Clearstream Banking does not assist in this regard but may be required, upon request, to disclose to the Greek Tax Authorities the identity of its customers, their holdings and the amount of income paid to the customer on Greek government debt securities.

Further clarification and guidance is still to be provided by the Greek Ministry of Finance regarding the taxation for non-resident legal entities.

Further information

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

or Clearstream Banking Customer Service or their Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and 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).