ENDE
Announcement

Italy: Reduced tax rate on dividends for EU/EEA corporation - new O.T.M.I. available

Tax | Italy

Reference

Code
A16177
Service level
CBL
Last Updated
15.12.2016

TAX HELP DESK LUXEMBOURG

E:

tax@clearstream.com

T:

+352-243-3 2835

F:

+352-243-63 2835

Further to our announcement A16005, dated 8 January 2016, Clearstream Banking1 wishes to remind customers that effective

1 January 2017

the reduced tax rate of 1.20% will apply to dividends paid to companies resident in a European Union (EU) or a European Economic Area (EEA) white-listed country.

A new One Time Master Instruction (O.T.M.I.) has been created, to allow the final beneficial owners to apply for the 1.20 % reduced rate on dividend payments distributed as of 1 January 2017.

Impact on customers

The reduced rate of 1.375% will continue to apply on dividends distributed to the eligible beneficial owners until 31 December 2016 and the certification requirements vary according to the following situations:

  • The beneficial owner has already provided an O.T.M.I. before 31 December 2016. The O.T.M.I. is valid until revoked, therefore the beneficial owner is not required to send a new O.T.M.I. The reduced rate of 1.20% will apply automatically as of 1 January 2017, based on the existing O.T.M.I.
  • The beneficial owner has not yet provided any O.T.M.I.
    • The payments the beneficial owner wants to certify for is distributed on or after 1 January 2017: the beneficial owner has to provide the new O.T.M.I. that is reflecting the new reduced tax rate of 1.20%.
    • The payments the beneficial owner wants to certify for is/was distributed on or before 31 December 2016: the beneficial owner has to provide the old O.T.M.I. that is reflecting the reduced rate of 1.375%.

Both forms can be found on our Tax forms to use - Italy page.

Further information on the applicable full procedure can be found on our Market Taxation Guide - Italy page.

Further information

Customers may contact the Clearstream Banking Tax Help Desk or Clearstream Banking Client Services or their Relationship Officer.
------------------------------------------
1. Clearstream Banking refers collectively to 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, and Clearstream Banking AG (for Clearstream Banking Frankfurt (CBF) customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.