Relief at source – eligibility, documentation, deadlines – Bulgarian debt securities
Who can obtain relief at source?
Tax relief at source on interests from non-listed Bulgarian corporate bonds, non-listed mortgage bonds, non-listed municipal bonds (collectively “non-listed bonds”) is available through Clearstream Banking1, provided that:
- The final beneficial owner is resident in a country that has signed a DTT with Bulgaria and
- The interest payment is not the first one of the calendar year2.
Documentation requirements
In order to benefit from tax relief at source on interests from non-listed bonds, customers must ensure to provide Clearstream Banking with the following documents within the applicable deadlines. The related templates of the forms are available on our Tax forms to use section.
For all customers applying for tax relief at source on interests from Bulgarian non-listed bonds:
- One-Time Certificate for Bulgarian Withholding Tax purposes, in the name of the Clearstream Banking customer
- Certificate of residence, in the name of the final beneficial owner(s)
In addition, for Clearstream Banking customers that are holding the Bulgarian non-listed bonds on behalf of third parties:
- List of Beneficial Owners
Deadlines for receipt of documents
In order to benefit from tax relief at source on interests from Bulgarian non-listed bonds, Clearstream Banking customers should provide the required documentation within the below prescribed deadlines. If any documentation is received after these deadlines, the customer’s entire application for tax relief at source will be rejected.
Deadline | |
Relief at source on non-listed bonds | |
One Time Certificate | 11 BD before the PD, 10:00 CET |
Certificate of residence | 11 BD before the PD, 10:00 CET |
List of Beneficial Owners | 11 BD before the PD, 10:00 CET |
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1. Clearstream Banking refers collectively to Clearstream Banking S.A. and Clearstream Banking AG (for Clearstream Banking AG customers using Creation accounts)
2. For interests from Bulgarian non-listed corporate bonds, non-listed mortgage bonds, non-listed municipal bonds, the first interest payment of the calendar year is always paid net of withholding tax, with no possibility to benefit from tax relief at source. However, tax relief at source will be available as of the second interest payment of the calendar year, provided that the certification requirements are fulfilled.