France: Temporary extension of the grace period for relief at source documents - update II
Note: This announcement, originally published on 24 March 2020 and updated on 17 April 2020, has been further updated to include the temporary acceptance of CORs when Box IV of Form 5000 has not been completed. The changes have been highlighted.
Due to the current exceptional circumstances, Clearstream Banking1 informs customers that the FTA extended temporarily the validity of the certificates of residence (CORs) provided in 2019 for the benefit of the simplified procedure.
With the new ordinance of 25 March 2020 (Ordonnance n° 2020-306 du 25 mars 2020), the deadline, initially extended to 30 April 2020, is extended to 15 July 2020.
Effective
immediately
the CORs and Form 5000s provided in 2019 are considered valid until 15 July 2020.
Background
CORs and Form 5000s to obtain relief at source or quick refund through the simplified procedure of withholding tax on French-sourced dividends are in principle valid until 31 December of the year in which they were executed.
This validity may be extended until 31 March of the following year on condition that a new COR is provided during that following year. Please refer to Announcement C19035 for further details.
With this new temporary measure, the CORs provided in 2019 are considered valid until 15 July 2020, on condition that a new valid COR is provided in original before the end of 2020.
Important note: The CORs provided by foreign individuals to obtain the benefit of the 12.8% are valid for three years. Therefore, CORs dated 2018 will only expire on 31 December 2021.
Impact on customers
Customers wishing to obtain relief at source or quick refund on behalf of beneficial owners must follow the procedure detailed below:
For all beneficial owners who have not provided a valid documentation for relief at source in 2019
The new valid documentation, fully completed, dated and signed must be provided to Clearstream Banking in original at the latest on the record date minus one business day of the first dividend payment date to which it applies, by 09:00 CET.
The FTA have confirmed that a certificate of residency (COR) issued by the final beneficiaries' foreign tax authorities, when Box IV of the Form 5000 has not been completed, can be temporarily accepted.
The COR must clearly mention that the beneficiary is resident within the meaning of the double taxation agreement signed with France and sent together with the Form 5000.
For all beneficial owners who have provided a valid documentation for relief at source in 2019
- If the documentation was provided in order to benefit from the rate of 12.8%:
This COR is valid for three years. No action to be taken. - If the Form 5000 was provided in order to benefit from the double taxation treaty (DTT) through the simplified procedure:
The Form 5000 will be valid until 15 July 2020 and must be renewed, in original, before the end of 2020.
Important note: Failing to provide the original documentation before the end of 2020 will result in the reversal of the exemption obtained and the application of the full 28% withholding tax rate to all dividends received since 1 January 2020
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, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.