Italy: Relief at source and quick refund on dividend distribution of Ferrari shares - Update
Note: This announcement, originally published on 24 April 2020, was updated to correct the email address used to request templates and forms.
Clearstream Banking AG1 informs customers that on
5 May 2020
a dividend distribution at a price of EUR 1.13 per share will be paid to all shareholders of Ferrari shares (ISIN NL0011585146) as at record date 21 April 2020.
This dividend distribution subject to Italian tax at 26% and to Dutch tax at 15% is in total subject to a maximum of 41% withholding tax by default in CBF.
Customers may apply for a quick refund for their underlying beneficial owners according to the procedure described in the DTCC notice. For full details regarding these requirements, please refer to the original DTCC notice available from the DTCC website (CUSIP / Security name can be used to retrieve the notice).
Customers are strongly encouraged to obtain this notice to ensure they are aware and comply with the full requirements for this event.
Impact on customers
There is a possibility of relief at source and quick refund of both Dutch and Italian tax.
Relief at source and quick refund of Dutch tax is based on disclosure of beneficial owners. All non-Dutch beneficial owners must be disclosed to obtain a full exemption of the 15% Dutch withholding tax rate. Dutch residents will not receive exemption from the Dutch withholding tax but can benefit from reduced Italian withholding tax, if applicable.
Once disclosure has been submitted, beneficial owners can apply for a further reduced rate based on their available treaty benefits with Italy.
Relief at source and quick refund of Italian tax depends on the status of the beneficial owners. Documentation must be provided as mentioned in the DTCC notice.
All templates and forms can also be requested by sending an email to CAdatabase.cs@clearstream.com, quoting exactly in the subject line: TAX ELECTION FERRARI N3167Y103
Customers wishing to obtain a relief at source or quick refund of Dutch and/or Italian tax must submit two separate instructions: One for full refund on 15% Dutch withholding tax and the other for 26% Italian tax reclaim, as follows:
For an exemption of Dutch withholding tax
- Send a per-payment instruction for each tax rate required via SWIFT or CreationOnline message (please refer to Announcement D18075 for full instruction formatting requirements) including the following:
- Customer account number;
- ISIN code;
- Corporate action ID;
- Record date;
- Payment date;
- Statement confirming submission of beneficial owner disclosure.
- Customers are required to specify the applicable tax rate in field 92a for SWIFT or in the Withholding Tax field for CreationOnline.
- Disclosure of beneficial owners: All non-Dutch beneficial owners must be disclosed to get full refund on the 15% Dutch withholding tax. The relevant breakdown of disclosure must be sent to tax.customers@clearstream.com including the following information in the subject line:
Customer account number ISIN code, corporate action ID, record date, customer’s SWIFT or CreationOnline instruction reference.
The template is available as mentioned above.
For exemption or reduced rate of Italian withholding tax
- Send a per-payment instruction for each tax rate required via SWIFT or CreationOnline message (please refer to Announcement D18075 for full instruction formatting requirements) including the following:
- Customer account number;
- ISIN code;
- Corporate action ID;
- Record date;
- Payment date;
- Statement confirming submission of beneficial owner disclosure.
- Customers are required to specify the applicable tax rate in field 92a for SWIFT or in the Withholding Tax field for CreationOnline.
- Disclosure of beneficial owners: All beneficial owners requesting exemption or a reduced Italian tax rate must be disclosed. The relevant breakdown of disclosure must be sent to tax.customers@clearstream.com including the following information in the subject line:
Customer account number, ISIN code, corporate action ID, record date, customer’s SWIFT or CreationOnline instruction reference.
The template is available as mentioned above. - Provide the original certification detailed in the DTCC notice to CBF via registered post to the following address:
Clearstream Banking S.A.
Attention: OTL Luxembourg
42, Avenue JF Kennedy
L-1855 Luxembourg
Luxembourg - Sending of Additional documentation
Any additional documentation may be requested from the customer or the final beneficial owners. Upon request such documentation must be provided to the address stated above.
Important note: Customers are reminded that it is the customer's responsibility to ensure that final beneficial owners are eligible for the tax rates applied, including CBF default rates. Neither CBF nor its local depository has any direct or indirect liability towards the Italian or the Dutch authorities in this regard.
Deadline
In order to benefit from relief at source or a quick refund, customers must ensure that CBF receives the above-described documents by:
- Relief at source: Latest 27 April 2020 at 10: 00 CET
- Quick refund:
- First batch: Latest 18 May 2020at 10:00 CET
- Final batch: Latest 12 June 2020 at 10:00 CET
Default action
If no certification is received by CBF before the stated deadline, 41% withholding tax will be applied by default on the dividend payment.
CBF will take no responsibility in respect of any losses, claims, penalties, taxes and interest thereon due to no action being taken by the customer regarding the above matter or receipt of documents after the indicated deadline.
If CBF is informed after the tax instruction or certification deadline indicated above that a beneficial owner has obtained relief at source to which the beneficial owner is not entitled (as example due to incorrect entitlement, data, certification etc), CBF will not assist in withholding the tax or paying it back to the respective tax authorities.
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This Announcement is published by Clearstream Banking AG (CBF), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, registered with the Commercial Register of the District Court in Frankfurt am Main, Germany, under number HRB 7500.