Reference
Clearstream Banking’s1 local depository BNP Paribas Securities Services (“the depository”) has informed us that effective
1 August 2016
additional fees may be levied in the event of late disclosure of the final beneficial owners when applying for a refund on equities.
Impact on customers
A fee of EUR 250 per line may be applied by the depository to Beneficial owners (the “BO”) wishing to:
- obtain a standard refund (the “SR”) on dividends paid as of 1 August 2016 but who have not provided any disclosure at the moment of the relief at source (RAS), or
- amend the details already provided for RAS or quick refund (the “QR”)
This fee is in addition to the refund fees already applied by Clearstream Banking in accordance with the CBL Fee Schedule.
This extra EUR 250 fee is required when amending the reporting once already sent by BNP Paribas Securities Services to the Portuguese tax authorities.
Action to be taken
To avoid the application of this extra fee, new or amended disclosure of beneficial ownership positions should be provided at the latest at 10:00 CET on the 10th of the month (or the last business day prior to the 10th, if the latter is not a business day) following the month in which the dividend payment was made, allowing the depository to comply with the reporting requirements.
The disclosure has to be provided to Clearstream Banking through the usual Position Breakdown Report (“PBR”) and the TIN request (for customers who are unable to provide a Portuguese TIN). Disclosure of the BOs will result in the application of the applicable reduced rates.
Failing to disclose the beneficial owner’s identity by this deadline may result in the application of a EUR 250 fee per line.
Important note: We recommend that customers provide the BO disclosure by the above mentioned deadline even if you have no intention in obtaining a standard refund at the moment of this disclosure.
Note that the deadlines for providing the tax documentation for relief at source, quick refund and standard refund remain the same. Please refer to our Market Taxation Guide - Portugal for further details.
Further information
For further information about procedures, customers may contact the Clearstream Banking1 Tax Help Desk, Clearstream Banking Client Services 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, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.