General information - types of securities, deadlines, other market specifics - Estonia

15.07.2022

Types of securities eligible in Clearstream Banking

The eligible securities issued in Estonia are as follows:

  • Government bonds;
  • Corporate bonds;
  • Commercial paper
  • Municipal bonds
  • Equities.
  • Investment funds

Withholding tax Services

Government bonds, corporate bonds, commercial paper and municipal bonds

   

Beneficial owner

Relief at
source

Quick
refund

Standard
refund

No withholding tax is deducted on interest from Estonian debt securities held in Clearstream Banking,

NA

NA

NA

Equities

Relief at
source

Quick
refund

Standard
refund

Beneficial owner

   

Non-resident legal entity

Yes

Yes

Yes

Non-resident individual of a DTT country

No

Yes

Yes

Estonian resident legal entity (until the recipient makes a distribution of profits)

Yes

Yes

No

Investment funds

Relief at
source

Quick
refund

Standard
refund

Beneficial owner

N/A

N/AN/A

Non-resident legal entity

Yes

Yes

Yes

Non-resident individual of a DTT country

No

Yes

Yes

Estonian resident legal entity (until the recipient makes a distribution of profits)

Yes

Yes

No

Applicable default withholding tax rates

The default rates of withholding tax applicable in Clearstream Banking on income paid on Estonian securities are as follows:

  • 0% on interest from government bonds;
  • 0% on interest from corporate bonds;
  • 0% on interest from municipal bonds;
  • 0% on interest from Commercial paper;
  • 0/7% on dividend from equities:
    • - 0% if the dividend is paid from irregular profit distribution that is subject to 20% income tax; and
    • - 7% if the dividend is distributed by an Estonian company subject to the lower corporate income tax rate of 14%).
  • 0/7% on dividends from investment funds:
    • 0% if the dividend is paid from irregular profit distribution that is subject to 20% income tax; and
    • 7% if the dividend is distributed by an Estonian investment fund subject to the lower corporate income tax rate of 14%).

Holding restrictions

please refer to the “Investment regulation” section of the Clearstream Banking Market Profile - Estonia

Capital Gains Tax

There is no capital gains tax withheld through Clearstream Banking on securities held in Clearstream Banking. Capital gains tax may however be payable on specific gains. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.

Stamp Duty

There is no stamp duty withheld through Clearstream Banking on securities held in Clearstream Banking. Stamp duty may however be payable on specific transactions. Clearstream Banking does not provide assistance in this regard. Please consult your tax advisor for further information.

Deadlines for relief at source, quick refund and standard refund

Relief at source

In order to benefit from tax relief at source on Estonian equities or investment funds, customers must ensure that the accurate documentation is submitted by the following deadlines:

Documentation

Deadline

One-Time Certificate for Estonian Equities or Investment funds

  • If the record date (RD) is payment date (PD) – 1 business day:  no later than RD at 10:00 CET.
  • If the RD is at least PD-2 business days: no later than PD-2 business at 10:00 CET.

Breakdown of holdings

  • If the record date (RD) is payment date (PD) – 1 business day:  no later than RD at 10:00 CET.
  • If the RD is at least PD-2 business days: no later than PD-2 business at 10:00 CET.

Certificate of tax residence

Upon request

Other supporting documentation

Upon request

Quick refund

In order to benefit from quick refund on Estonian equities, customers must ensure that the accurate documentation is submitted by the following deadlines:

Documentation

Deadline

One-Time Certificate for Estonian Equities

at the latest 9 months after the PD for which QR is required

Breakdown of holdings

at the latest 9 months after the PD for which QR is required

Certificate of tax residence

at the latest 9 months after the PD for which QR is required

Declaration of Beneficial Ownership

at the latest 9 months after the PD for which QR is required

Power of attorney

at the latest 9 months after the PD for which QR is required

Certificate of tax residence

Upon request

Other supporting documentation

Upon request

The estimated time for receiving a refund is up to 30 calendar days from the date on which Clearstream Banking receives the certified documents for quick refund, although this can vary depending on the issuer and when the application is filed.

Standard refund

The statutory deadline for reclaiming withholding tax using the standard refund procedure is three years following the dividend payment date that was subject to tax.

The deadline by which Clearstream Banking must receive the documentation for a standard refund , at the latest, three months before the statutory deadline. All standard refund applications received after this deadline will be processed by Clearstream Banking on a “best-efforts” basis. However, in such cases, Clearstream Banking will apply an extra charge and accepts no responsibility for forms that have not reached the Estonian Tax Authorities by the date considered being the statute of limitations deadline.

For tax reclaims, you are reminded that Clearstream Banking accepts no responsibility for their acceptance or rejection by the tax authorities of the respective country. It is the customer’s responsibility to determine any entitlement to a refund, to complete the forms required correctly and to calculate the amount due.

When are refunds received?

The estimated time for receiving a refund is 60 calendar days from the date on which Clearstream Banking receives the certified documents for standard refund, although this can vary depending on when the application is filed, and the complexity of the information supplied in the reclaim form.