Relief at source - Estonian investment funds

15.07.2022

Eligible beneficial owners

The following beneficial owners are eligible to obtain relief at source from withholding tax on dividend payments on Estonian investment funds:

Investment funds


Beneficial owner

Tax Rate

Non-resident legal entity

0%

Estonian resident legal entity (until the recipient makes a distribution of profits)

0%

Documentation requirements

For the purpose of obtaining relief or exemption at source on behalf of eligible beneficial owners, customers must submit to Clearstream Banking, before the relevant deadlines, the following documentation:

  • One-Time Certificate for Estonian Equities or Investment Funds; and
  • Breakdown of Holdings (if applicable)

And upon request

  • Certificate of residence
  • Other supporting documentation

To comply with the requirements of the Estonian Tax Law, Clearstream Banking may be required to disclose our or/and the beneficial owners identity and holdings for any dividend event. Customers therefore undertake to provide Clearstream Banking, promptly upon request at any time, with such information as may be necessary to substantiate the accuracy of the customer’s instruction for a reduced tax rate.

Customers shall hold Clearstream Banking harmless for any loss, cost, expense, liability or damage that Clearstream Banking could face in case of any tax adjustment Clearstream Banking would need to perform on their account, no matter when this adjustment would take place.

Deadline

In order to benefit from tax relief at source on Estonian investment funds, customers must ensure that the accurate documentation is submitted by the following deadlines:

Documentation

Deadline

One-Time Certificate for Estonian Equities or Investment Funds

  • If the record date (RD) is payment date (PD) – 1 business day:  no later than RD at 10:00 CET.
  • If the RD is at least PD-2 business days: no later than PD-2 business at 10:00 CET.

Breakdown of holdings

  • If the record date (RD) is payment date (PD) – 1 business day:  no later than RD at 10:00 CET.
  • If the RD is at least PD-2 business days: no later than PD-2 business at 10:00 CET.

Certificate of tax residence

Upon request

Other supporting documentation

Upon request