France: Procedure for exemption from dividend withholding tax for foreign CIVs - Revision
Note: This Announcement, originally published on 28 August 2013 and updated on 19 September 2013, is now updated to correct the definitions of eligible foreign CIVs. Changes are highlighted.
Effective
immediately
exemption from withholding tax on dividends from French equities is available for eligible foreign Collective Investment Vehicles (CIVs) through a relief at source procedure.
This is further to our Announcement A13120, dated 9 August 2013.
Note: The current operational details for the relief at source procedure have been confirmed by our French depository. No clear operational procedure has been specified by the French Tax Authorities (FTA) with regard to standard refund. As a consequence, a reclaim service is currently not offered by Clearstream Banking1 or by its local depository.
Eligibility and applicable rates
Eligible foreign CIVs are as follows:
- UCITS IV: UCITS established in a European Union or European Economic Area member state and governed by Directive 2009/65/CE of 13 July 2009 (the “UCITS IV” directive);
- Certain alternative investment funds (AIFs) established in a European Union member state and governed by Directive 2011/61/UE of 8 June 2011 (the “AIFM” directive).
The available reduced rates for eligible CIVs are:
- A full exemption of withholding tax on French-sourced dividend income; or
- A 15% withholding tax rate on French-sourced dividend income distributed by Sociétés d’Investissement Immobilier Cotées (SIICs) or Sociétés à Prépondérance Immobilière à Capital Variable (SPPICAVs).
The relief at source procedure
In order to benefit from exemption from or a reduced rate of withholding tax at source on French-sourced dividend income, an eligible CIV should provide, by the deadlines prescribed by Clearstream Banking, the following documentation:
- Form RPPM - Revenus et profits du patrimoine mobilier:
One form, duly completed and signed by the CIV or its managing company, for each fund and/or, if a fund has sub-funds, for the fund and for each of its sub-funds, and provided once by UCITS IVs (valid until revoked) or annually by AIFs (valid for the calendar year) at the latest seven business days before the first dividend payment date.
N.B.: This form is currently available in French only; an unofficial English translation (available for information purposes) is attached below.
The Form RPPM replaces the Form 5000. Beneficial owners that have already sent a Form 5000 for 2013 and want to claim exemption based on their CIV status will have to send a Form RPPM instead as their Form 5000 will not be considered. - A per-payment detailed List of Beneficial Owners (BO list):
BO list uploaded, by the customer via the Clearstream Banking online Upload BO List facility, at the latest one business day before record date, by 10:00 CET.
The text of BO type code 91 (Foreign CIV) must be used.
In cases of changes to the list due to late trade settlement, an amended BO list can be loaded on record date, by 10:00 CET at the latest, but such amended list will only be accepted if a previous BO list had been sent within the first deadline (record date -1 business day, by 10:00 CET). - A per-payment Corporate Action Instruction:
The per-payment instruction is a tax breakdown that must be sent, via a formatted SWIFT or CreationOnline MT565 message, at the latest one business day before payment date, by 10:00 CET, and must include the account number of the customer, the ISIN code, the payment date and a breakdown of the position, with the nominals and respective tax rates to apply, and must specify the holding exempt for the eligible CIV. - Any additional documentation proving the status of the eligible CIV, upon request of the FTA.
This relief at source procedure has been confirmed by our local depository but, as discussions between the market participants and the FTA are still ongoing, it cannot be considered as definitive.
Further information
We continue to monitor the situation and will provide further details when they become available.
For further information, customers may contact the Clearstream Banking Tax Help Desk on:
| Luxembourg | Frankfurt | |
| Email: | tax@clearstream.com | tax@clearstream.com |
| Telephone: | +352-243-32835 | +49-(0) 69-2 11-1 3821 |
| Fax: | +352-243-632835 | +49-(0) 69-2 11-61 3821 |
or Clearstream Banking Customer Service or their Relationship Officer.
------------------------------------------
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 (CBF) and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).
| As a registered customer, subscribe to our free email alerts service to receive immediate, daily and/or weekly notification of the latest customer publications on our website. Unsubscribe at any time; we respect your email privacy. |