U.S.A.: Asset Services: Improvements to straight through processing related to Section 302 of the Internal Revenue Code
Further to our Announcement L15150, dated 25 September 2015, LuxCSD would like to inform customers that, effective
immediately
LuxCSD will implement enhancements to its corporate actions notification processing for the U.S. market, to make it more efficient and to enable customers to benefit from improved straight through processing (STP).
This system enhancement is in response to customer demand and forms part of LuxCSD’s ongoing commitment to the timeliness and quality of its services to customers.
Impact on customers
For all corporate action events, the following narrative text (“ADTX”) will be removed from the notification text:
“Cash payments may be subject to the tests set out under Section 302 of the Internal Revenue Code (IRC). Payments to foreign persons can be treated as taxable distribution subject to 30 percent (or lower treaty rate) withholding unless the required event certifications are provided by all beneficial owners.”
Whenever Section 302 of the IRC is applicable, customers will be informed in the tax notification as soon as information is made available to Clearstream Banking1.
Further information
General information about Section 302 can be found in the Tax FAQ.
For further information, customers may contact Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.