Portugal T2S: Tax impact on account structure and service offering - update
Note: This announcement, originally published on 27 October 2020 and amended on 3 November 2020, has been further updated , is further updated to remind that the processes explained herein apply exclusively to CBL customers. Changes have been highlighted.
Further to Announcement C20022, informing customers of the activation of Clearstream Banking AG1 (CBF) direct access to the Portuguese market (Interbolsa) and the eligibility of Interbolsa issued securities for settlement in T2S, effective
14 December 2020
Clearstream Banking S.A.2 (CBL) will deposit and settle Portuguese T2S eligible assets with CBF in order to enable future OneClearstream service upgrades (the “Migration Date”). This forms part of our ongoing effort to harmonise our services allowing customers to benefit from advantages across multiple areas of our business.
CBL will access Interbolsa for settlement in T2S via CBF, as follows:
Type of link
Relayed link via CBF (All T2S eligible assets) to Interbolsa
Government bonds, corporate bonds, listed equities, warrants eligible in Interbolsa
CBF will act as Portuguese tax agent for Portuguese T2S eligible debt securities and equities (the “Portuguese Securities”) processed via the link with Interbolsa. The tax service currently offered by CBL to its customers remains unchanged except from the following two amendments:
1. Portuguese Tax Identification Number (NIF)
Any non-Portuguese and Portuguese final beneficial owner holding Portuguese securities (debt securities and/or equities) with CBL and disclosing its identity to apply for a reduced tax rate via the relief at source3 or the quick refund is required to provide CBL with a Portuguese Tax Identification Number (NIF), being the primary way to identify their activity (at income and transactions level) in CBF (in its role as tax agent) communications with the Portuguese Tax Authorities (PTA).
In the relevant reports that need to be submitted to the PTA, CBF, acting as tax agent, is under an obligation to detail all positions and movements in the name of the beneficial owner (when disclosed) and of CBL, being CBF’s direct customer (for undisclosed positions and transactions).
With reference to the original announcement, we encourage CBL customers to carefully review footnote three. To clarify, the requirements are summarised below:
A NIF is not required in the following situations:
- For non- Portuguese residents applying for relief at source (RAS) on bonds.
- For Portuguese and non-Portuguese residents to settle a trade: The NIF does not need to be included in the instruction.
A NIF is mandatory in the following situations:
- For Portuguese residents:
- Relief at source and quick refund on bonds and equities
- For non-Portuguese residents:
- Quick refund on bonds, the NIF being a mandatory field of the quick refund form Mod.25-RFI; and
- Relief at source and quick refund on equities, the NIF being a mandatory field in MOD.21-RFI.
Requesting a new NIF
The process of obtaining a NIF requires the following set of information depending on the status of the applicant.
- Complete name;
- Foreign address;
- State of residence;
- Tax Identification Number issued by the State of residence;
- Date of birth;
- Place of birth;
- Corporate name;
- Foreign address of the head office;
- State of residence;
- Tax Identification Number in the State of residence.
Customers must send the request for NIF to CBL via the Excel file (mandatory template available under Tax Forms to use - Portugal - CBL) duly completed and password protected to email address firstname.lastname@example.org, in addition to instruction with password by CreationOnline, Xact Web Portal or SWIFT free-format message, including the following wording:
Attention: PTS Tax Services
Please find hereafter the password to open our NIF request sent to your attention by email on (date and time) from the email address (email address of the sender).
The NIF request will be processed on the PTA’s dedicated website and CBL will revert to customers (via MT568 SWIFT message) with the results of the request once they are disclosed by the PTA. It can take up to seven business days upon receipt of the request to obtain NIF from PTA. The NIF will also be visible in CreationOnline and Xact Web Portal.
Confirming an already existing NIF
For entities having a NIF already allocated, customers must provide it to CBL by using the same template as explained above, on which the NIF must be completed in the respective column (G in current template). It can take up to seven business days upon receipt of the existing NIF to check its validity.
Note: The process of requesting/confirming a NIF is a one-time exercise. Once the NIF is provided/confirmed by the PTA and communicated to the customers, those must ensure that they communicate the NIF to the related beneficial owner allowing them to use it for the process of relief at source or quick refund if relevant.
2. Standard Refund
The standard refund process is still being analysed. Information on its availability will be provided at a later stage.
For further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your Relationship Officer.
1. Clearstream Banking AG (CBF), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, registered with the Commercial Register of the District Court in Frankfurt am Main, Germany, under number HRB 7500.
2. Clearstream Banking S.A. (CBL) registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.
3. Non-Portuguese beneficial owners eligible for tax exemption on Portuguese debt securities, are not obliged to disclose their identity for tax relief at source and consequently, not requested to provide their NIF. However, the NIF is mandatory when they want to recover the tax withheld on interest via the quick refund, or to obtain tax relief on dividends at source or via the quick refund process.