Italy: Improvement of TIN requirements for Italian taxable trades
Clearstream Banking1 informs customers that effective
22 November 2021
TIN requirements and validation rules, which are published in the relevant Market Guides, have been fully enforced as follows for the customer settlement instructions on Italian taxable trades.
Background
For the purpose of compliance at all times with any local rules and/or regulatory requirements, Clearstream Banking as withholding agent in the Italian market has improved its internal operational tax processes hence also ensuring the ongoing maintenance of a high quality of tax services to its customers.
Impact on customers
As a reminder, customers holding tax exempt accounts with multiple beneficial owners behind, wishing to maintain the benefit of tax exemption on trades, the following rules are applicable:
- a TIN must be provided in the customer settlement instruction;
- the TIN must be valid and effective as of the requested settlement date in the customer settlement instruction.
For customers holding a tax exempt single beneficiary account wishing to maintain the benefit of tax exemption on trades, the following rules are applicable:
- the customer can either input in their settlement instruction, the TIN they certified for or no TIN at all.
For customers holding tax exempt accounts with multiple beneficial owners behind and/or a tax exempt single beneficiary account, settlement instructions will be rejected under the following circumstances:
- Clearstream Banking does not have any recorded TIN;
- each time a TIN is not valid or not recognised by Clearstream Banking;
- if the TIN is not valid and effective as of the requested settlement date mentioned in the customer settlement instruction;
- if the customer inputs more than one TIN in their instruction (only one TIN is recognised by Clearstream Banking).
- if the customer provides a different TIN in their settlement instruction than the TIN recorded in Clearstream Banking (Important note: the format of the TINs must also be the same, such as capital letters, spaces).
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.