Canadian trust instruments - Quick refund - eligibility, documentation, deadlines
Eligible beneficial owners
Beneficial owners are eligible for a quick refund of withholding tax on income from Canadian trust instruments as follows:
| Eligible beneficial owners | Rate applicable at source |
| Residents of a DTT country (non-resident according to Form NR301) a | Tax treaty or 25%, whichever is lower |
a. Partnerships (NR302) and Hybrid Entities (NR303) are not considered eligible and any reclaim applications must be made via the standard refund procedure.
Important note:
Customers acting as Swiss intermediary for final beneficial owners of Canadian trust instruments can also apply for a quick refund via Clearstream Banking.
Documentation requirements
For a quick refund of withholding tax on income from Canadian trust instruments, the documentation requirements are as follows:
Residents of a DTT country (non-resident according to Form NR301)
- One-Time Certificate – Canadian Equities and Trust Instruments;
- Per-Payment Instruction;
- CRA Form NR301, as follows:
- For customers holding proprietary assets: An original Form NR301, signed by the customer as final beneficial owner qualifying for DTT relief according to Form NR301, must be submitted to Clearstream Banking directly.
- For customers acting as intermediary: An original Form NR301, signed by the final beneficial owner qualifying for DTT relief according to Form NR301, must be submitted to and retained by the customer, who must provide it promptly to Clearstream Banking upon request at any time.
The customer must exercise due diligence with respect to the information provided on this form and must verify whether the information is sufficient to claim DTT relief on behalf of the final beneficial owner.
And, upon request:
- List of Beneficial Owners – Canadian Equities and Trust Instruments;
- CRA Form NR301 (from customers acting as intermediary);
- Certificate of Residence;
- Any other tax documentation as required from time to time.
Swiss intermediary banks
- One-Time Certificate – Canadian Equities and Trust Instruments - Swiss Intermediary;
- Per-Payment Instruction.
Deadline for receipt of documents
The deadline for reclaiming withholding tax on Canadian securities using the quick refund procedure through Clearstream Banking will be communicated to customers via announcements, on an annual basis, at the year end. Customers must therefore refer to the annual announcement in order to have the applicable deadlines.
The usual deadlines are however as defined below:
Event payment date | Clearstream Banking deadline |
From 1 January to 30 November | 2 December, 10:00 CET of the year of the dividend payment. |
From 1 December to 31 December | 30 December, 10:00 CET of the year of the dividend payment. |
Positions for which customers have not submitted the requested documentation before the prescribed deadline will be taxed, through Clearstream Banking, at the maximum applicable rate.