ClearstreamXact: Enhanced tax functionality on multiple markets – Update
Note: This announcement, originally published on 10 November 2023 and amended on 29 November 2023, has been further amended to include additional information on the enhanced functionality. Changes have been highlighted.
Further to Announcements C22037, A23088, (Norway) and A23087 (Sweden), Clearstream Banking1 informs clients about tax handling enhancements via new functionalities in Xact Web Portal, effective
27 January 2024
The following changes will be available:
U.S. Tax Announcements Dashboard alerts (U.S.)
Clients will be able to see when new Tax Certification messages have been received in Xact Web Portal:
- In the Dashboard, a "New WTRC Requests” widget will be added under "Message Exchange" in My Indicators.
- Clicking on the widget will indicate the number of requests and take the user directly to the Message Exchange2 domain where a predefined query "New WTRC Requests" will be added with the following filters:
- "Tax WTRC - request";
- Received Timestamp From/To ranging from current date minus 28 calendar days to current date;
- Folder = New.
Certification request announcements with enhanced narrative
Tax narratives previously sent to clients via a separate Withholding Tax Relief Certification (WTRC) will now be integrated into the income event notification. As a result, these WTRCs will no longer be sent.
The change will apply for the following markets:
Australia, Bulgaria, Canada, Chile, Czech Republic, Estonia, Finland, France, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Latvia, Luxembourg, Malta, New Zealand, Norway, Poland, Portugal, Romania, Slovakia, South Africa, Spain, Sweden, Switzerland, Depository Receipts and Eurobonds.
The improvement will be available for taxable events where Clearstream Banking offers relief at source and occasionally quick refund tax services.2
Please note that a WTRC continues to be used for the announcement of tax events with an underlying corporate action event (DVOP, DRIP, DVCA CHOS, ACCU, SOFF etc.)
Event search using the “IRS Income Code” (U.S.)
It will be possible to search events in Xact Web Portal by using the new “IRS Income Code” drop-down list in the following queries:
Asset Servicing / Event / CA Event Query
- New "IRS Income Code" drop-down list under "Search By CA Events”;
- Enabled only if no "Market" is selected or "US - UNITED STATES OF AMERICA" is selected.
Asset Servicing / Confirmation / CA Confirmation Query
- New "IRS Income Code" drop-down list under "Search By Movement".
Quick refund via formatted instructions
Instructing via MT565 and Xact Web Portal CA Instruction for quick refund, where the service is offered, is available as of the effective date.
Beneficial owner disclosure in straight-through processing for Germany, Finland, Norway and Sweden
A new possibility to run preliminary certification checks on selected Beneficial Owners will be introduced. It will be found under Asset Servicing / Instruction / CA Instruction / Create CA Instruction / Beneficial owner details / Add:
1. Optional pre-validation check via Party Lookup for TIN and Name and Address (BO Lookup window)
Populate the relevant fields and click on the “Pre-validation” check mark as shown below:
The resulting “Pre-validation Feedback” status will then appear as shown below:
2. New pre-validation button
Alternatively, if the BO Lookup was done without using the pre-validation check, or if the BO Lookup was not used at all, then a BO list pre-validation check is still possible by clicking on the “Pre-validation” button:
Further information
Please see the Clearstream website for more information about Xact Web Portal.
For further information, please contact the Clearstream Connectivity Helpdesk or your Relationship Manager.
------------------------------------------
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.
2. On an exceptional basis, a Withholding Tax Relief Certification (WTRC) event notification, together with an income event notification, may still be required.