Japan: Unlisted equities, ETFS and REITs

16.05.2023

Clearstream Banking1 informs clients that effective

immediately

relief at source from withholding tax on income payments from Japanese unlisted equities, ETFs and REITs will no longer be possible via Clearstream Banking.

Background

Previously, due to the nature of unlisted securities (no official data source is available, etc.), no market practice was applicable for relief at source from withholding tax on income payments from unlisted equities, ETFs and REITs in Japan. Therefore, any relief at source was only offered by Clearstream Banking on a case-by-case and "best efforts" basis.

A standard refund of withholding tax was not available through Clearstream Banking.

Impact on clients

The standard rate of withholding tax on income payments from Japanese unlisted equities, ETFs and REITs is 20.42% in Clearstream Banking.

Clients entitled to income payments in Japanese unlisted equities, ETFs and REITs will be taxed at the maximum tax rate. Clearstream Banking does not provide tax relief at source, quick or standard refund services for Japanese unlisted equities, ETFs and REITs.

Further information

For further information, please contact the Clearstream Banking Tax Help Desk or 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 clients 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.