German Tax Reform: ClearstreamXact enhanced tax functionality – Update
Note: This announcement, originally published on 12 July 2024, has been amended based on the letter from Bundesministerium der Finanzen (German Federal Ministry of Finance) dated 27 August 2024. The letter informs about the decision to postpone the implementation of the German withholding tax relief reform to
1 January 2026
Following the introduction of the German Tax Reform (Abzugsteuerentlastungsmodernisierungsgesetz - AbzStEntModG), Clearstream Banking1 informs clients about enhanced Xact Web Portal and Xact File Transfer tax functionality.
Background
Following the introduction of the German Withholding Tax Relief Modernisation Act, Clearstream Banking will adapt its systems to allow its clients to submit all information required by law.
The law enters in effect on 1 January 2025. However, the Bundeszentralamt für Steuern (BZSt - German Federal Central Tax Office) has announced it will not accept tax certification requests before 1 April 2025. Therefore, Clearstream Banking will also not accept requests prior to this date.
New web page and email address
A new “German tax reform” section under Tax and certification has been created where all relevant information and updates related to the reform will be published on a regular basis.
Clients with specific questions about the German tax reform can send enquiries by email to the following address: GermanTaxReform@clearstream.com.
List of changes
A. Additional information that must be provided for tax certification requests:
- Recipient-related data: Disclosure of the final creditor and beneficial owner of the income as well as for account representatives, if any;
- Account-related data: Disclosure of the full custody chain between the German paying agent and the final creditor;
- Income-related data: On gross income, applied tax rates and on the underlying holding as at record date;
- Transaction-related data: On acquisitions and sales within a a period of 12 months prior to record date and 45 days after due date.
B. How can clients provide the required information?
Clearstream will support the following:
- New input formats via XML standard from the Foreign Banks Association (VAB) in Xact Web Portal and Xact File Transfer;
- Additional fields in Xact Web Portal to support the new functionality, including import of files (extracts prepared offline) and validation features;
- On top of existing new and cancellations of Tax voucher requests, corrections of Tax voucher requests will be introduced.
C. Tax vouchers vs Certificates of Submission
German residents will continue to receive a “tax voucher” (Steuerbescheinigung) however non-residents will now receive a “certificate of submission” (Datenübermittlungsbescheinigung)
D. Accounts with reduced tax rate according to Section 7 (1) of the Investment Tax Act
A two-step process is introduced, the disclosure of the fund (identified by the Ordnungsnummer) that exists today remains, a second step to disclose Recipient and Transaction related data within 6 months after payment will be introduced.
Client testing
Since BZSt will only accept tax certification requests from 1 April 2025, Clearstream Banking will provide clients with a possibility to test the changes related to “Tax Vouchers” during Q1 2025.
The testing will give clients an opportunity to validate that they are able to provide the new required data, either via XML or Xact Web Portal.
Further information
Further detailed information will be communicated at a later stage.
Please see the Clearstream website for more information about ClearstreamXact.
For further information, please contact the Clearstream Connectivity Helpdesk or your Relationship Manager.
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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, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.