U.S.A.: Non-Resident Alien (NRA) withholding tax refund instructions format
Clearstream Banking1 would like to inform customers that as of
1 January 2022
the form “Statement to Reclaim U.S. Withholding Tax” will not be accepted anymore to request refund of Non-Resident Alien (NRA) withholding tax on U.S taxable income payments.
In order to benefit from U.S. tax refunds of NRA withholding tax, customers must provide Clearstream Banking with an IRS form (W-8 or W-9 form) and a One-Time Certificate detailing, amongst other things, the customer’s status and account structure. Depending on the account structure selected in the One-Time Certificate, customers may also need to send a per-payment instruction to Clearstream Banking.
While such instruction was previously accepted either via SWIFT format or via the sending of the original of the document “Statement to Reclaim U.S. Withholding Tax”, Clearstream Banking now aims at harmonising its processes and favours the use of paperless instructions.
Impact on customers
As of 1 January 2022, Clearstream Banking’s customers wishing to request a refund of NRA withholding tax should, when a per payment instruction is required, send the latter:
- Via Xact Web Portal or via free-format tax instructions (MT568 or MT599) in accordance with the guidelines published in A20027;
- As soon as possible after the original U.S. taxable income payment date, as:
- Tax refunds on U.S. taxable dividends and interests paid from 1 January to 30 September of a calendar year (N) and received after 31 October N are subject to an extra fee. For more information, see Announcement A18178; and
- Tax refunds are processed in the order received and only when there are sufficient funds in Clearstream Banking internal tax account.
For further information, please contact the Clearstream Banking Tax Help Desk or Clearstream Banking Client Services or your Relationship Officer.
1. Clearstream Banking refers collectively to (i) 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 (ii) Clearstream Banking AG (for Clearstream Banking AG customers using Creation accounts and Clearstream Banking AG customers) with registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500