Switzerland: Enhancement of affidavit instruction process
Clearstream Banking1 informs clients that effective
1 June 2024
clients must submit their per-payment affidavit instructions, where applicable, via an MT565 Corporate Action instruction message in Xact via Swift or a CA Instruction in Xact Web Portal when requesting relief at source or quick refund on Swiss domiciled funds and no longer via free-formatted Swift.
The per-payment instruction must be provided for affidavit eligible positions and include:
- Impacted Clearstream Banking account number;
- ISIN;
- Corporate ID;
- Instructed security quantity on behalf of non-residents of Switzerland;
- Affidavit Declaration for non-residents of Switzerland (to be included in field :70E::CETI//);
- Requested tax rate to apply;
- Client’s full contact details.
The following affidavit information is required in the per-payment instruction from clients asking for the exemption (field :70E::CETI//) and narrative for Xact Web Portal message.
QUOTE
THE UNDERSIGNED BANK HEREWITH DECLARES:
1. THAT THE TAX FAVOURABLE HOLDING OF THE ABOVE-MENTIONED INCOME PAYMENT OF THE INVESTMENT FUNDS BELONGED TO NON-RESIDENTS, THAT IS, PERSONS HAVING IN SWITZERLAND NEITHER DOMICILE NOR PERMANENT RESIDENCE, NOR A RESIDENCE IMPLYING THE OBLIGATION TO PAY TAXES OF THE FEDERATION, THE CANTON OR THE MUNICIPALITY.
2. THAT THIS BANK ON THE DATE OF THE PAYMENT OF THIS DISTRIBUTION WAS HOLDING THE UNITS MENTIONED ABOVE IN SAFEKEEPING FOR THE BENEFICIARIES OF THE INCOME AND CREDITS THIS DISTRIBUTION TO THEIR ACCOUNTS.
3. THAT THIS BANK, IN ACCORDANCE WITH ITS LEGAL OBLIGATION, WILL AT ANY TIME UPON REQUEST SUBMIT DATA IN SUPPORT OF THIS DECLARATION TO THE SWISS BANK PAYING THE COUPONS.
UNQUOTE
For full formatting requirements of these instructions, clients should refer to the MT564 Corporate Action Notification, to the Xact via Swift User Guide, and Announcements C18050 and C21034.
Important Note: The position which is not disclosed as affidavit eligible will be considered by Clearstream Banking’s agent as being held by Swiss residents and will be subject to the maximum default rate applicable. This position will also be eligible to the additional distribution applicable to Swiss residents, if any.
Impact on clients
Clients should refrain from submitting their per-payment instructions via Swift MT599 Free Format message.
Clients who will submit their per-payment instructions via free-formatted messages after the deadline will be charged in accordance with our fee schedule.
Further information
For further information, clients may contact Clearstream Banking Client Services, their Relationship Officer or the Tax Help Desk.
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1. Clearstream Banking refers collectively to 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 Clearstream Banking AG (for Clearstream Banking AG clients using Creation accounts), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.