Form descriptions - Standard refund - Italian debt securities
Information is provided here about the forms and their use in relation to the procedure for standard refund of withholding tax on income from Italian debt securities, as follows:
- Power of Attorney from Final Beneficial Owner to Clearstream Banking.
- Modulario 111
- Claim for the refund, exemption or application of the reduced tax rate on income paid to non-residents
Power of Attorney from Final Beneficial Owner to Clearstream Banking
Each beneficial owner must provide a Power of Attorney to Clearstream Banking in order to enable the payment of refunds on Clearstream Banking’s account and also to avoid the 10-years prescription of refunds according to art. 2943 of the Italian Civil Code.
- If the beneficial owner is a company, the Power of Attorney should be printed under the company’s letterhead.
- If the beneficial owner is an individual, a copy of the identity card of the beneficial owner must be attached to the Power of Attorney.
- The template that was confirmed by the COP and cannot be amended, must be provided in the original with the first refund application and copies must be attached to all future applications.
- Any standard refund claim that does not include the Power of Attorney from Final Beneficial Owner to Clearstream Banking will be rejected.
Who completes it? | Beneficial owner. |
How often is it provided? | Per reclaim application. |
When is it provided? | At the latest, three months before the statutory deadline. |
Copy or original? | Original once, followed by copies. |
Modulario 111
Official Italian tax reclaim form to be used on refund applications for government bonds (except by supranational organisations recognised by Italian law).
Note: The Ministry of Finance will not accept multiple reclaims (via Modulario 111) from the same beneficial owner with split positions in the same security for the same coupon period. Such reclaims are judged to be duplicates. Customers are requested to ensure that beneficial owners submit one reclaim only for the same security for a given period.
The form consists of a set of four similar pages. The respective recipient is shown in the top right-hand corner, as follows:
- The Italian Tax Authorities - via Clearstream Banking;
- Clearstream Banking;
- The customer;
- The final beneficial owner's tax authorities.
Furthermore, the Italian Tax Authorities confirmed that all forms submitted for reclaiming tax overwithheld at source that are completed inter alia by the local tax authorities of the final beneficial owner, must be submitted on double-sided A3 format. The justification is to have all the information on one single paper sheet and create the link between the section completed by the local tax authorities and the rest of beneficial owner’s data completed in the other sections.
If the Mod 111 is submitted in A4 format, a valid Certificate of Residence covering the payment date of the respective event must be provided in addition to the refund form for each refund application.
Important note for Spanish and Portuguese beneficial owners:
An electronic certificate of residence issued by the tax authorities of Spain and Portugal is now considered as legally acceptable, provided that it is submitted as a complement to the appropriate reclaim form, duly completed and certified in all sections (apart from the section reserved for the local tax authority) and that it meets the following criteria:
- It is provided to Clearstream Banking in printed paper copy in due time; and
- It is issued under the Double Taxation Treaty (DTT) in force; and
- It includes the validation code necessary for the authenticity process; and
- It is confirmed as authentic on the website of the respective local tax authority.
How to complete Modulario 111 with regard to the cutover:
A tax reclaim application impacted by the change of rate from 20% to 26% in the 30 June 2014 / 1 July 2014 cutover must be reflected in the Mod 111 on two lines per event, as follows:
- The first line must contain the period of time from initial transaction/coupon payment until 30 June 2014 that has been taxed at 20%; and
- The second line must contain the period of time from 1 July 2014 until the sell/coupon payment that has been taxed at 26%.
- In the Cover Letter, it must be explained that the two lines are linked to the same event.
Note: A spreadsheet is attached containing notes on the completion of Modulario 111.
Who completes it? | Beneficial owner, Clearstream Banking customer and beneficial owner's tax authorities. |
How often is it provided? | Per reclaim application. |
When is it provided? | At the latest, three months before the statutory deadline. |
Copy or original? | Original required. |
Claim for the refund, exemption or application of the reduced tax rate on income paid to non-residents
No official tax reclaim form exists specifically for Supranational organisations.
Those entities can however use the Claim for the refund, exemption or application of the reduced tax rate on income paid to non-residents.
This form consists of two parts to be completed by the claimant:
- The cover page (p.1-3) : “Interest (FORM-B)” must be ticked and details of the beneficial owner, representative, proxy must be completed as applicable;
- The FORM B – INTEREST (P.4-5): “refund” must be ticked and details about interest and beneficial owner declaration completed. It must be certified by the final beneficial owner’s tax authorities.
Who completes it? | Beneficial owner and Clearstream Banking customer and Beneficial owner's tax authorities. |
How often is it provided? | Per reclaim application. |
When is it provided? | At the latest, three months before the statutory deadline. |
Copy or original? | Original required. |