Quick and standard refunds for debt securities and equities - New Zealand
Eligibility of securities
New Zealand bonds under the Approved Issuer Levy (AIL) regime
Quick and standard refunds for New Zealand bonds under the AIL regime is not available. The reason is that under New Zealand tax legislation, there are no mechanisms available to allow investors to retrospectively apply for the AIL.
New Zealand bonds under the Non-Resident Withholding Tax (NRWT) regime
Quick and standard refunds for New Zealand bonds under the NRWT regime are available on a case-by-case and “best efforts” basis as no market practice is applicable.
New Zealand equities
Quick and standard refunds for New Zealand equities are available on a case-by-case and “best efforts” basis as no market practice is applicable.
Procedure for a quick refund
Clients wishing to submit via Clearstream1 a quick refund request for New Zealand bonds under the NRWT regime or for New Zealand equities must submit the request via Swift or Xact Web Portal.
- Breakdown of holdings with request for quick refund.
Upon receipt of the request, Clearstream will investigate the following details with its local depository:
- Availability of quick refund for the particular event;
- Certification requirements for the particular beneficial owner.
Important note: Clearstream cannot guarantee the acceptance of the reclaim or payment of the refund by the local depository and/or the tax authorities.
Procedure for a standard refund
Clients wishing to submit a standard refund request for New Zealand bonds under the NRWT regime or for New Zealand equities via Clearstream should send to Clearstream:
- Letter of request to Clearstream for reclaim of withholding tax on New Zealand Securities.
Upon receipt of the request, Clearstream will investigate the following details with its local depository:
- Availability of standard refund for the particular event;
- Certification requirements for the particular beneficial owner.
Note: Quick and standard refunds are not available for New Zealand residents through Clearstream. An overpaid withholding tax can be reclaimed through the investors filing of their income tax return at the end of the year. Clearstream does not assist in this regard. Please consult your tax advisor for further information.
Important note: Clearstream cannot guarantee the acceptance of the reclaim or payment of the refund by the local depository and/or the tax authorities.
Deadlines for receipt of documents
Documentation for a quick refund of withholding tax on income from New Zealand securities must be received by Clearstream at the latest ten business days before the end of the financial year by 10:00 CET (NZ financial year is 1 April to 31 March).
The statutory deadline for reclaiming withholding tax using the standard refund procedure is four years after the end of the financial year (1 April to 31 March) in which the income payment was made. Documentation for a standard refund of withholding tax on income from New Zealand securities must be received by Clearstream at the latest two months before the statutory deadline.
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1. Clearstream refers collectively to Clearstream Banking S.A. and Clearstream Europe AG (for Clearstream Europe AG clients using Creation accounts).