Spain: Amended procedure for certification of tax residency on tax forms for residents of Spain by the Spanish Tax Authorities
Clearstream Banking1 would like to inform customers that its Spanish depository Banco Bilbao Vizcaya Argentaria (BBVA) declared that in response to the high number of documents received by the Spanish Tax Authorities (STA) and its inability to address them because of the “state of alarm” and the continuity of COVID-19 contingency measures, they have concluded to simplify the existing procedure of certifying tax residency of Spanish residents on foreign tax forms.
Effective,
immediately
certificates of residence (CORs) issued by the STA may replace the certification of tax residency on foreign tax forms for the following countries:
- Belgium;
- Canada;
- France;
- Germany;
- Ireland;
- Norway;
- Sweden;
- UK.
Clearstream Banking does not offer a tax service on all the above-mentioned countries. Please always refer to our market taxation guides for information on the tax process offered.
Background
In many markets, the eligibility to relief at source or standard refund relies on the completion of tax forms emitted by each country. For instance, Form 5000 in France, and Form 276 in Belgium.
Based on requirements from the different foreign authorities, those forms are only valid if signed and stamped by the tax authorities of the beneficial owner’s country of residence.
For Spanish beneficial owners, foreign tax forms will be certified by the STA. However, because of the current situation in Spain (the “state of alarm” and COVID-19 contingency measures), the STA entered into arrangements with the countries listed above to provide a COR instead of the certification of foreign tax forms.
Impact on customers
Even though it has not yet been confirmed to Clearstream Banking by all the different markets involved, we recommend customers follow the below procedure.
To obtain relief at source or a refund of withholding tax in the markets listed above for which Clearstream Banking offers a service, Spanish beneficial owners must provide within the usual deadline of each market:
- The non-certified foreign tax form usually necessary for the tax relief procedure of each market.
- A COR, issued by the STA, mentioning the Double Tax Treaty (DTT) between Spain and the country in which the final beneficial owner has invested. This corresponds to “Anexo V” issued by the STA.
For information regarding the applicable procedures of relief at source or refund, please refer to the related market taxation guide.
This procedure is temporary. Clearstream Banking and BBVA are monitoring the market and will inform customers as soon as further developments are available.
Further Information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and 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.