Canada: Xact via SWIFT and Xact Web Portal messages to replace BO Upload for quick refund
Clearstream Banking1 informs customers that effective
24 October 2022
customers must submit their per-payment instruction, if applicable, via an MT565 Corporate action instruction message in Xact via SWIFT or a Corporate action instruction in Xact Web Portal, when requesting quick refund on dividends from Canadian equities; and no longer via the Clearstream BO Upload function.
The per-payment instruction must be provided for each tax rate and country of tax residence requested, if applicable, and must include:
- Your account number;
- ISIN code;
- Corporate ID;
- Total holding;
- Number of shares for which the reduced or exempt tax rate applies.
Additionally, the following formatting information is required:
Xact via SWIFT | Xact Web Portal |
Sequence C: Beneficial Owner’s details – BENODET | Beneficial owner details |
:94C: DOMI Country of Domicile | Country of domicile (for beneficial owner details) |
:95V: OWND Beneficial Owner Note: Only required if eligible for full tax exemption (0%). | The beneficial owner’s details under the “Country of domicile”. Note: Only required if eligible for full tax exemption (0%). |
Sequence D: Corporate Action Instruction – CAINST | Corporate action instruction |
:92a: TAXB Requested Tax Rate | Requested Withholding Tax Rate (%) |
Note: The requirement to provide a tax rate is not applicable to instructions sent for the following Corporate Action events on the Canadian market, due to specific notifications sent for these events:
SWIFT CA Event Indicator (CAEV) | Description | Mandatory/Voluntary Indicator (CAMV) |
DVCA | Currency Option on Dividend | CHOS |
DRIP | Dividend Reinvestment | CHOS |
DVOP | Dividend Option | CHOS |
For such events, either:
- a specific option number needs to be selected;
or
- for customers interested in the SECU option, the tax rate is available and needs to be provided in the respective field of the instruction.
For full formatting requirements of these instructions, customers should refer to the MT564 Corporate Action event notification, to the Xact via SWIFT User Guide, and Announcements C18050 and C21034.
Impact on customers
Customers will no longer be able to submit their per-payment instructions via the BO Upload function.
Further information
For further information, customers may contact Clearstream Banking Client Services, their Relationship Officer, or Tax Help Desk.
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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.