Standard refund - eligibility, documentation, deadlines - Spanish equities (securities held in CBF)
Who can apply for a standard refund?
A standard refund of withholding tax on dividends from Spanish equities is available through Clearstream Banking for beneficial owners who did not obtain a quick refund, as follows:
| Eligible beneficial owners | Effective rate of tax after refund | Tax refund available a |
Residents of Double Taxation Treaty (DTT) countries | Tax treaty rate | 19% minus the tax treaty rate b |
Supranational organisations recognised as such by Spanish law | 0% | 19% |
a. Expressed as a percentage of the gross dividend amount.
b. Amount of relief will be 0% if the DTT rate exceeds 19%.
Important note:
Customers are reminded that all standard refund applications depend on the final approval of the Spanish Tax Authorities and that Clearstream Banking accepts no responsibility for their acceptance or non-acceptance by the respective authorities.
Documentation requirements
To apply for a standard refund of withholding tax on dividends from Spanish equities, the following documentation must be submitted to Clearstream Banking for all types of eligible beneficial owner in two steps:
- Upload of a Breakdown of refund:
Excel file containing the BO details to be communicated to the STA. This includes, among other details, the Spanish TIN (n code). If the BO has no Spanish TIN the dedicated field must be left blank and it will be requested from the STA by the agent. The Breakdown of refund has to be provided via the BO upload facility, where the template is available. Once uploaded, a reference number is communicated that has to be inserted in the Letter of Request to Clearstream Banking for Reclaim of Spanish Withholding Tax for payments after 30 November 2020. - Sending paper documentation
- An English Bank identity certificate issued by the beneficial owner’s bank, containing and certifying the ownership of the designated cash account by the beneficial owner. Specific details are required for non-EU cash accounts. It will be used by the Spanish tax authorities to pay the refund. It should be provided in original once with the first tax reclaim and is valid until revoked.
- An English power of attorney granting to Clearstream Banking the right to process the reclaim with the Spanish Tax Authorities on behalf of the final beneficial owner. This Power of Attorney does not need to be notarised or apostilled.
Note: In addition, Clearstream Banking will provide a Power of Attorney, notarised and apostilled, granting to its agent the right to process the reclaim with the Spanish Tax Authorities and issuing companies on Clearstream Banking's behalf. - A Letter of Request to Clearstream Banking for Reclaim of Spanish Withholding Tax for payments after 30 November 2020 (LOR) granting to Clearstream Banking the right to process the reclaim with the Spanish Tax Authorities on behalf of the customer.
- Full chain of credit advices.
Additional documentation must be submitted to Clearstream Banking, depending on the status and residency of the final beneficial owner, as follows:
Residents of Double Taxation Treaty (DTT) countries that have no “Petición de Devolución”:
- A Certificate of Residence issued by the local tax authorities of the beneficial owner, it is recommended to provide it double-sided.
Residents of countries for which there is a “Petición de Devolución” (Austria, the Netherlands, Sweden and Switzerland):
- A “Petición de Devolución” this Petición is issued by the local Tax Authorities of the BO’s country of residence. However, should the STAs require a COR instead of a Petición de Devolución in order to process the tax reclaim, such CoR will have to be provided; and
- A Power of Attorney (if the customer or a third party is completing the “Petición de Devolución” on behalf of the beneficial owner).
Supranational organisations recognised by Spanish law:
- A copy of the “Convenio Constitutivo” confirming tax-exempt status, if applicable.
EU/EEA pension funds/plans:
- An ANNEX VI, signed by the representative of the EU/EEA pension fund/plan, certifying that the fund fulfils all the legal requirements published in Article 14.1.k of the Non-Resident Income Tax Law. ANNEX VI, which must be used for this purpose (replacing the usual certificate of residence), is officially published in Orden Ministerial EHA/3316/2010 and cannot be changed.
EU/EEA Collective Investment Vehicles (CIVs):
- A Statement for EU/EEA CIVs
A certificate (replacing the usual certificate of residence) issued by the competent authority of the EU/EEA member country of origin of the final beneficial owner (CIV), stating that it fulfils the conditions laid down in Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009. Member States shall designate the competent authorities in charge of signing the above-mentioned certificates in accordance with the provisions described in the Article 97 of the above- mentioned Directive: “The competent authorities shall be public authorities or bodies appointed by public authorities.”
Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Spanish equities.
Statutory deadline for reclaiming withholding tax
The statutory deadline for reclaiming withholding tax using the standard refund procedure is four years following the dividend payment date.
Important note: Reclaims of tax withheld on dividend paid as of 1 January may not be submitted to the Spanish Tax Authorities before the month of February of the year following the year in which the dividend payment was made.
Clearstream deadline for standard refund applications
The deadline by which Clearstream Banking must receive the documentation for an application is at the latest three months before the statutory deadline.
Standard refund follow-up and payment
For standard refund on dividend income paid as of 30 November 2020, the tax amounts are refunded by the STA directly to the final beneficial owner’s accounts instead of processing the refund through the custody chain, via Clearstream Banking and its agent. Clearstream Banking highlights that the follow-up of the payment completion is under its customers’ responsibility as neither Clearstream Banking nor its agent have access to the final beneficiary cash account.
Once the reclaim is filed in the STA website, a reference number is provided that is communicated to the customers for follow up purposes. Clearstream Banking will amend the status of the reclaim to “closed” and communicate the reference number in the comment visible in Xact Web Portal. The reference number will not be communicated via Swift.
When are funds received?
The estimated time for receiving a standard refund is eighteen months from the date of receipt by the Spanish Tax Authorities. This timing can vary depending on when the application is filed and on the complexity of the information supplied in the reclaim form.
Notes on tax reclaims
Customers warrant the completeness and accuracy of the information they supply to Clearstream Banking.
With respect to tax reclaims in general, customers are reminded that Clearstream Banking accepts no responsibility for their acceptance or non-acceptance by the tax authorities of the respective country. It is the customer's responsibility to determine any entitlement to a refund of tax withheld, to complete the forms required correctly, and to calculate the amount due. Clearstream Banking is under no obligation to carry out any investigation in respect of such information.