Form descriptions - Relief at source - Canadian equities

17.04.2023

One-Time Certificate - Canadian Equities and Trust Instruments

One-time certification that provides information regarding the Clearstream Banking customer, stating that it holds Canadian equities and/or trust instruments on behalf of one or more beneficial owners that are entitled to apply for relief or exemption at source.

How many are provided?

One per Clearstream Banking account.

Who completes it?

Customer.

How often is it provided?

Once. Valid until revoked.

When is it provided?

By the deadline indicated in the customer notification sent per income event.

Copy or original?

Original required.

Per-Payment Instruction

Customers must submit their per-payment instruction, if applicable, via a formatted MT565 instruction message via Swift or free-formatted instruction via Swift or Xact Web Portal, when requesting relief at source on dividends from Canadian equities.

The per payment instruction must be provided for each tax rate and country of tax residence requested, if applicable, and must include:

  • Customer account number;
  • ISIN code;
  • Corporate ID;
  • Total holding; and
  • Number of shares for which the reduced or exempt tax rate applies.

Additionally, the following formatting information is required:

Xact via Swift

Xact Web Portal

Sequence C: Beneficial Owner’s details – BENODET

Beneficial owner details

:94C: DOMI Country of Domicile

Country of domicile (for beneficial owner details)

:95V: OWND Beneficial Owner

Note: Only required if eligible for full tax exemption (0%).

The beneficial owner’s details under the “Party”.

Note: Only required if eligible for full tax exemption (0%).

Sequence D: Corporate Action Instruction – CAINST

Corporate action instruction

:92a: TAXB Requested Tax Rate

Requested Withholding Tax Rate (%)

Note: The requirement to provide a tax rate is not applicable to instructions sent for the following Corporate Action events on the Canadian market, due to specific notifications sent for these events:

Swift CA Event Indicator (CAEV)

Description

Mandatory/Voluntary Indicator (CAMV)

DVCA

Currency Option on Dividend

CHOS

DRIP

Dividend Reinvestment

CHOS

DVOP

Dividend Option

CHOS

For such events, either:

  • a specific option number needs to be selected;

or

  • for customers interested in the SECU option, the tax rate is available and needs to be provided in the respective field of the instruction.

How many are provided?

One per Clearstream Banking account and per each tax rate required.

Who completes it?

Customer.

How often is it provided?

Per relevant payment.

When is it provided?

By the deadline indicated in the customer notification sent per income event

Copy or original?

The per-payment instruction must be delivered via a formatted MT565 instruction via Swift or a free-formatted instruction via Swift or Xact Web Portal message.

NR301 Declaration of Eligibility for Benefits under a Tax Treaty for a Non-Resident Taxpayer

Customers holding proprietary assets must submit, directly to Clearstream Banking, a Form NR301 signed by themselves as final beneficial owner qualifying for Double Taxation Treaty (DTT) relief as non-resident according to Form NR301.

Customers holding assets as intermediary must receive and retain a Form NR301 signed by the final beneficial owner qualifying for DTT relief as non-resident according to Form NR301 and must provide it promptly to Clearstream Banking upon request at any time.

N.B.: Form NR301 must be dated before the first relevant income payment.

How many are provided?

One per beneficial owner.

Who completes it?

Beneficial owner.

How often is it provided?

Once. Valid for three years from the end of the calendar year in which it is signed and dated by the final beneficial owner, unless there is a change in the taxpayer’s eligibility for treaty benefit, in which case a new form must be provided immediately.

When is it provided?

(Own assets) By the deadline indicated in the customer notification sent per income event.
(Intermediary) upon request.

Copy or original?

Original required.

Copy or original?

Original required.

Withholding Tax Exemption Letter issued by the CRA

The Certificate of Exemption indicates the tax-exempt status of the beneficial owner of the securities as granted in the letter by the Canada Revenue Agency (CRA).

The certificate of exemption must in addition specify the CRA identification number (sometimes referred to as the “control number”) of the beneficial owner.

Eligible beneficial owners must contact the CRA and submit an application to request recognition. Once a favourable Certificate of Exemption is issued, the original should be sent to Clearstream Banking.

Note: Each ruling from the CRA is on a case by case basis.

How many are provided?

One per beneficial owner.

Who completes it?

The Canada Revenue Agency.

How often is it provided?

Once. To be renewed at expiry date. Customers are responsible, at all relevant times, to monitor the expiration of such letter and either to obtain renewal of such letter or, immediately on expiration of such letter, to provide instructions to have the correct applicable Canadian withholding tax deducted and that Clearstream has no responsibility or liability in this regard.

When is it provided?

By the deadline indicated in the customer notification sent per income event.

Copy or original?

Original or authenticated copy required.

List of Beneficial Owners - Canadian Securities

Provides the list of beneficial owners that obtained the reduced rate at source.

Who completes it?

Customer.

How often is it provided?

Upon request.

When is it provided?

Upon request.

Copy or original?

Original required.

Certificate of Residence

A Certificate of Residence with the beneficial owner’s full name and address issued by the beneficial owner’s tax authorities.

How many are provided?

One per beneficial owner.

Who completes it?

Beneficial owner’s tax authorities.

How often is it provided?

Upon request.

When is it provided?

Upon request.

Copy or original?

Original required.