Form descriptions - relief at source & refund from Clearstream Banking - U.S. equities and debt securities

01.04.2022

This paragraph provides information regarding the various tax forms and instructions to be sent in order to benefit from tax relief at source or refund of withholding tax on i) interests from U.S. debt securities or ii) dividends from U.S. equities. The templates of the forms are available on our Tax Forms to use section.

One-time certificate  

The One-Time Certificate (OTC) should be submitted by all customers in order to confirm amongst others whether the account is held for the customer’s own assets or third parties’ assets; what are the customer’s Chapter 3 and Chapter 4 statuses; what is the account structure/ applicable custody chain.

 How many are provided?

One per Clearstream Banking customer account

Who completes it?

Clearstream Banking customer

How often is it provided?

Once, it is valid until revoked, unless there is a change in circumstances

When is it provided?

  • For tax relief at source: 10 BD before the relevant income payment date, 10:00 CET
  • For tax refund request to Clearstream Banking: the latest on 31 December of the year1 in which the applicable income payment was made.  

Copy or original?

Original required

Per payment instruction

The per payment instruction should be submitted by all customers that have selected to instruct Clearstream Banking on a per payment basis in their OTC.

Who completes it?

Clearstream Banking customer

When is it provided?

  • For tax relief at source: 2 BD before the relevant income payment date, 10:00 CET
  • For tax refund request to Clearstream Banking: the latest on 31 December1 of the year in which the applicable income payment was made.  

How to instruct?

The per payment instruction should mandatorily be sent via SWIFT (MT565/MT568/MT599) or via XACT Web Portal or CreationOnline.


When the instructions are sent via free-format message, the below formatting requirements should be fulfilled:


1. Customers should include only one tax instruction per SWIFT message. One tax instruction consists of:

  • One U.S. taxable event (that is, one ISIN or common code and one payment date);
  • One customer account number at Clearstream Banking;
  • One tax rate to be applied to a specific quantity of positions in the targeted ISIN/common code.


2. Customers should specify all the following data in each SWIFT message:

  • Function:
    • New or Cancel. If Cancel, please specify the reference of the SWIFT message to cancel;
  • Country of taxation: U.S.;
  • Customer account number at Clearstream Banking;
  • Corporate Action Reference ID;
  • Security code: ISIN or common code (the common code is recommended if the security is not deposited in the home market);
  • Payment date (optional);
  • Quantity instructed;
  • Tax rate to apply to the quantity instructed
    • If 30% tax rate: Chapter 3 or Chapter 4;
  • Depending on the account structure selected, any other relevant information or breakdown enabling correct 1042-S or 1099 reporting.


W-9

The IRS form W-9 should be submitted by:

  • Clearstream Banking’s direct customer acting as U.S. exempt person to represent that it is a US exempt person and that it may benefit from a tax exemption
  • Clearstream Banking’s direct customer acting as a NQI that wants to benefit from a tax exemption on behalf of:
    • U.S. specified persons for which a 1099 reporting is required
    • US exempt persons
  • Clearstream Banking’s direct customer acting as QI that
    • does not assume Form 1099 and backup withholding responsibility (QIB or QIC as applicable)
    • wants to benefit from a tax exemption on behalf of U.S. specified persons for which a 1099 reporting is required

How many are provided?

One per U.S. recipient

Who completes it?

The U.S. recipient

How often is it provided?

Once, it is valid until revoked, unless there is a change in circumstances

When is it provided?

  • For tax relief at source: 10 BD before the relevant income payment date, 10:00 CET
  • For tax refund request to Clearstream Banking: the latest on 31 December of the year1 in which the applicable income payment was made.

Copy or original?

Copy or original

W-8IMY

The IRS form W-8IMY should be submitted by Clearstream Banking customer acting as foreign intermediary in order certify its Chapter 3 and Chapter 4 statuses and represent whether it assumes any withholding and/or reporting responsibilities.

In some instances (specified in the OTC if applicable), a W-8IMY in the name of the underlying customer of Clearstream Banking’s customer should also be provided.

How many are provided?

One per Clearstream Banking customer account

Who completes it?

Clearstream Banking customer (or in some specific cases, the underlying customer of Clearstream Banking’s customer)

How often is it provided?

  • In case the Clearstream Banking customer acts as QI, the W-8IMY should be provided once. It is valid until revoked, unless there is a change in circumstances
  • In case the Clearstream Banking customer acts as NQI, the W-8IMY should be provided once every 3 years. It is valid from the date the form is signed until the last day of the third succeeding calendar year

When is it provided?

  • For tax relief at source: 10 BD before the relevant income payment date, 10:00 CET
  • For tax refund request to Clearstream Banking: the latest on 31 December of the year1 in which the applicable income payment was made.

Copy or original?

Copy or original

W-8BEN-E

The IRS form W-8BEN-E should be submitted by:

  • Clearstream Banking’s direct customer
    • acting as non-U.S. final beneficial owner (entity) and
    • that want to certify its Chapter 3 and Chapter 4 statuses, represent that it is the final beneficial owner and that it may benefit from a tax exemption/reduced tax rate
  • Clearstream Banking’s direct customer acting as NQI that wants to benefit from a tax exemption/reduced tax rate on behalf of non-U.S. beneficial owners (entities)

How many are provided?

One per non-U.S. beneficial owner

Who completes it?

The non-U.S. beneficial owner

How often is it provided?

  • In case the W-8BEN-E includes a request to benefit from a reduced DTT rate, the W-8BEN-E should be provided once every 3 years. It is valid from the date the form is signed until the last day of the third succeeding calendar year (unless there is a change in circumstances)
  • In case the W-8BEN-E does not include a request to benefit from a reduced DTT rate, the W-8BEN-E should be provided once, it is valid until revoked (unless there is a change in circumstances)

When is it provided?

  • For tax relief at source: 10 BD before the relevant income payment date, 10:00 CET
  • For tax refund request to Clearstream Banking: the latest on 31 December of the year1 in which the applicable income payment was made.

Copy or original?

Copy or original

W-8EXP

The IRS form W-8EXP should be submitted by:

  • Clearstream Banking’s direct customer
    • acting as non-U.S. final beneficial owner that is a foreign government or international organization or foreign central bank of issue or foreign tax-exempt organization or foreign private foundation or government of U.S. possessions and
    • that wants to certify its Chapter 3 and Chapter 4 statuses, represent that it is the final beneficial owner and that it may benefit from a tax exemption/reduced tax rate
  • Clearstream Banking’s direct customer acting as NQI that wants to benefit from a tax exemption/reduced tax rate on behalf of non-U.S. beneficial owners that are foreign governments, international organizations, foreign central banks of issue, foreign tax-exempt organizations, foreign private foundations, or governments of U.S. possessions

How many are provided?

One per non-U.S. beneficial owner

Who completes it?

The non-U.S. beneficial owner

How often is it provided?

The validity period of the W-8EXP depends on the options selected in the form. As such, in accordance with IRS instructions, the form will either be provided once (if valid until revoked) or every three years (if valid from the date the form is signed until the last day of the third succeeding calendar year).

When is it provided?

  • For tax relief at source: 10 BD before the relevant income payment date, 10:00 CET
  • For tax refund request to Clearstream Banking: the latest on 31 December of the year1 in which the applicable income payment was made.

Copy or original?

Copy or original

W-8ECI

The IRS form W-8ECI should be submitted by:

  • Clearstream Banking’s direct customer
    • acting as non-U.S. final beneficial owner and
    • claiming that income is effectively connected with the conduct of a trade or business in the United States
  • Clearstream Banking’s direct customer acting as NQI that wants to benefit from a tax exemption on behalf of non-U.S. beneficial owners that are claiming that income is effectively connected with the conduct of a trade or business in the United States

How many are provided?

One per non-U.S. beneficial owner

Who completes it?

The non-U.S. beneficial owner

How often is it provided?

Once every 3 years. It is valid from the date the form is signed until the last day of the third succeeding calendar year)

When is it provided?

  • For tax relief at source: 10 BD before the relevant income payment date, 10:00 CET
  • For tax refund request to Clearstream Banking: the latest on 31 December of the year1 in which the applicable income payment was made.

Copy or original?

Copy or original

W-8BEN

The IRS form W-8BEN should be submitted by Clearstream Banking’s direct customer acting as NQI that wants to benefit from a tax exemption/reduced tax rate on behalf of non-U.S. beneficial owners that are individuals.

How many are provided?

One per non-U.S. beneficial owner

Who completes it?

The non-U.S. beneficial owner

How often is it provided?

  • In case the W-8BEN includes a request to benefit from a reduced DTT rate, the W-8BEN should be provided once every 3 years. It is valid from the date the form is signed until the last day of the third succeeding calendar year (unless there is a change in circumstances)
  • In case the W-8BEN does not include a request to benefit from a reduced DTT rate, the W-8BEN should be provided once, it is valid until revoked (unless there is a change in circumstances)

When is it provided?

  • For tax relief at source: 10 BD before the relevant income payment date, 10:00 CET
  • For tax refund request to Clearstream Banking: the latest on 31 December of the year1 in which the applicable income payment was made.

Copy or original?

Copy or original

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1. Clearstream Banking may grant few additional days after the 31 December of the year in which the income was paid. Such extended deadline would be published to Clearstream Banking customers in a dedicated announcement and will always be set before Clearstream Banking’s deadline to pay the last tax deposit for the impacted calendar year to the IRS (according to IRS instructions).