Philippines: Depository Receipts - quick refund documentation requirements
Clearstream Banking1 informs customers that effective
immediately
a quick refund can be obtained from withholding tax on dividends from Philippines Depositary Receipts (DR) if the appropriate documentation is submitted to Clearstream Banking before the respective deadline.
The standard rate of withholding tax on dividends from Philippines DRs is 25%.
Relief at source and standard refund of withholding tax on dividends from Philippines Depositary Receipts are not available through Clearstream Banking.
Documentation requirements
The documentation requirements vary according to the status of the beneficial owner. The original documentation/DTCC notice is available on the DTCC website and DTCC Eligibility Matrix with the full requirements and beneficial owners’ eligibility is available via email request to CADATABASE.CS@Clearstream.com, quoting “TAX ELECTION ELIGIBILITY MATRIX 2022” in the subject of the email. Customers are strongly recommended to obtain the original DTCC notice and Eligibility Matrix to ensure they are aware and comply with the full requirements for Philippines Depositary Receipts.
Beneficial owners eligible to a favourable tax treaty rate of 15% or 20% should submit:
- Original year of certificate of residency;
- Articles of incorporation/trust agreement;
- Special Power Of Attorney between beneficiary and broker (SPOA);
- Special Power Of Attorney between beneficiary and PLDT INC. (SPOA2);
- Certification of proof income is not connected with PE dividends;
- DTCC position screenshot.
- Any additional requirements for Transparent entities (please refer to the “Note” below).
Beneficial owners eligible to a favourable tax sparing rate of 15% should submit:
- Original year of certificate of residency;
- Articles of incorporation;
- Special Power Of Attorney between beneficiary and PLDT INC.;
- DTCC position screenshot.
- Any additional requirements for beneficial owners eligible to a favourable tax sparing rate of 15% (please refer to the “Note” below).
Beneficial owners eligible to tax exemption (any resident that can provide a BIR ruling confirming tax exempt status) should submit:
- Copy of BIR ruling (Beneficial owners may provide an application for the Tax-Exemption duly-filed and received by the BIR);
- DTCC position screenshot.
Note:
Additional documentation requirements for Beneficial owners eligible to a favourable tax treaty rate of 15% or 20% that are Transparent Entities (Trust, Partnership):
- Copy of the law of the country of domicile;
- List of owners/beneficiaries of the foreign entity;
- Proof of ownership of the foreign entity;
- Tax residency certificate issued by foreign tax authority to the owners/beneficiaries of the foreign entity.
Additional documentation requirements for Beneficial owners eligible to a favourable tax sparing rate of 15%:
If dividend is taxable in country of domicile
- Copy of the law of the country of domicile;
- Document of the amount of the tax credit actually granted by the foreign tax authority.
If dividend is exempt from tax in country of domicile
- Copy of the law of the country of domicile;
- Copy of any document issued by the foreign tax authority confirming that the non-resident is exempt from income tax on dividends received from the Philippines corporation.
Further information
For further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your Relationship Officer.
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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 AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.