Form descriptions - Relief at source - New Zealand equities

01.08.2016

The documentation to be submitted in relation to the procedure for relief at source from withholding tax on income from New Zealand equities is as follows:

  • Request for Application of a Reduced Rate of New Zealand Withholding Tax on Equities;
  • Breakdown of Holding;
  • Certificate of Exemption;
  • Tax Certificate for New Zealand Equities;
  • Certificate of Residence.

Request for Application of a Reduced Rate of New Zealand Withholding Tax on Equities

Customers who want to have a reduced withholding tax rate applied on dividends from New Zealand equities, on their own behalf or on behalf of the beneficial owner, must provide Clearstream Banking with a one-time Request for Application of a Reduced Rate of New Zealand Withholding Tax on Equities.

With the request duly submitted, Clearstream Banking will apply 15% withholding tax at source on taxable dividend payments for New Zealand equities.

How many are provided?One per Clearstream Banking account.
Who completes it?Customer.
How often is it provided?Once. Valid until revoked.
When is it provided?At the latest three business days before the payment date of the first dividend by 10:00 CET.
Copy or original?Original required.

Breakdown of Holding

Clearstream Banking provides a simplified procedure whereby, upon receipt of a duly completed and signed one-time Request for Application of a Reduced Rate of New Zealand Withholding Tax on Equities, Clearstream Banking applies, by default, withholding tax at source on dividend payments for New Zealand equities.

If beneficial owners are subject to a different tax rate (due to a different tax residency, eligibility for tax exemption under New Zealand domestic law, non-eligibility for a reduced rate of NRWT), customers must provide to Clearstream Banking, no later than the deadlines prescribed by Clearstream Banking, a Breakdown of Holding with the following details:

  • Account number of the customer;
  • ISIN code;
  • Payment date;
  • Total holding;
  • Breakdown, by tax domicile country, of the beneficial owners for whom relief from withholding tax is sought (based on Double Taxation Treaty (DTT) or full exemption granted by the New Zealand Tax Authorities), with the respective tax rate to be applied;
  • Full name and address of the beneficial owner (for tax-exempt beneficial owners only).

Note: Clearstream Banking customers must ensure that the breakdown relates to settled positions only; without consideration of pending trades.

How many are provided?One per dividend payment (if applicable).
Who completes it?Customer.
How often is it provided?Per dividend payment (if applicable).
When is it provided?At the latest three business days before the payment date of the relevant dividend by 10:00 CET.
Copy or original?Original required. Must be sent via  SWIFT message MT599 “Attention to SIT Tax Services Singapore”.

Certificate of Exemption

Customers who want to apply for tax exemption, either on their own behalf or on behalf of non-resident beneficial owners, should provide a certificate that indicates the tax-exempt status of the beneficial owner of the securities as granted by the New Zealand Tax Authorities.

Eligible beneficial owners must contact the New Zealand Tax Authorities and submit an application to request recognition. Once a favourable Certificate of Exemption is issued, a copy should be sent to Clearstream Banking.

How many are provided?One per beneficial owner.
Who completes it?The New Zealand Tax Authorities.
How often is it provided?Once. Valid until revoked.
When is it provided?At the latest three business days before the payment date of the first dividend by 10:00 CET.
Copy or original?Original or authenticated copy required.

Tax Certificate for New Zealand Equities

Provides the list of beneficial owners for whom relief at source is to be obtained.

How many are provided?One per dividend payment.
Who completes it?Customer.
How often is it provided?Upon request.
When is it provided?Upon request.
Copy or original?Original required.

Certificate of Residence

A Certificate of Residence, with the beneficial owner's full name and address, issued by the beneficial owner's tax authorities.

How many are provided?One per beneficial owner.
Who completes it?Beneficial owner’s local tax authorities.
How often is it provided?Upon request.
When is it provided?Upon request.
Copy or original?Original required.

Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from New Zealand equities.