Iceland: New withholding tax rates

Further to our Announcement A11194, dated 20 December 2011, we hereby provide additional information regarding the new withholding tax rates applicable as of

1 January 2012

The standard withholding tax rates applied on income from Icelandic debt securities will be as follows:

• For non-residents of Iceland:
  

• For legal entities, the rate will change from 18% to 10%;
  
• For individuals, the rate will change from 20% to 10%.

• 
  
• For residents of Iceland, the rate remains unchanged at 20%.

These rates will apply to interest only.

Note: In Iceland, any gains realised on debt securities are considered for tax purposes as interest payments.

Impact on customers

In accordance with the calculation method in use since 1 June 2011, the appropriate standard withholding tax rate will be applied to the interest for the complete period of holding and will be as follows for the different types of beneficial owner:

Exemption or relief at source as well as standard refund procedures will remain available for eligible beneficial owners, as described in our Announcements A11047 (reclaim), dated 13 April 2011, and A11058 (relief at source), dated 9 May 2011.

Further information

For further information, please contact the Clearstream Banking¹ Tax Help Desk on:

or Clearstream Banking Customer Service or your Relationship Officer.

1. Clearstream Banking refers to Clearstream Banking, société anonyme, 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).