Further to our Announcement A14035, dated 11 March 2014, regarding the implementation of OGAW-IV Umsetzungsgesetz (UCITS IV Directive), we would like to remind customers of the requirements for tax reclaim processing and the German tax voucher application process and how customers can request German tax vouchers in Clearstream Banking¹.

Documentation requirements

From 2012, a tax voucher is required for a tax reclaim with the Federal Central Tax Office (Bundeszentralamt für Steuern – BZSt). Each Clearstream Banking customer eligible for the benefits of a Double Taxation Treaty (DTT) needs a German single tax voucher “Official template III (BV)” (physical paper) when reclaiming taxes on income from German securities.

In order to apply for a standard refund of withholding tax, the following documents must be submitted to Clearstream Banking by the prescribed deadlines:

• Claim for Refund of German Withholding Taxes on Dividends and/or Interest;
• Power of Attorney;
• Tax Voucher for dividend payments since 1 January 2012;
• Credit advice for dividend payments up to 31 December 2011;
• Letter of Request to Clearstream Banking for Reclaim of German Withholding Tax;
• One-Time Customer Declaration;
• Resident Entitlement Questionnaire (if the applicant/end investor is a funds company).

Additional documentation requirements

The German Tax Authorities (GTA) have published a directive from the Federal Ministry of Finance (Bundesministerium für Finanzen – BMF) to the BZSt describing additional tax reclaim requirements to prevent unjustified reclaims of withholding tax on dividends from shares acquired over the dividend ex-date.

Upon request of the BZSt, non-residents must document when they acquired the shares and provide additional information and documentation.

BZSt will request the additional information by sending a separate letter of request or with the (preliminary) official notification.

Note: It is not stated in the directive when BZSt will request additional information, in what form and/or document type it should be presented, or by what medium it must be submitted.

How to fill in the Resident Entitlement Questionnaire

If the applicant/end investor is a funds company, the BZSt will require a Resident Entitlement Questionnaire in respect of confirmation of shareholder percentage distribution for tax reclaims.

The BZSt has made the questionnaire available in German only but will accept an English version if the translation has the same content and wording as the original German version. German and English versions of this questionnaire are available in Tax Forms to use - Germany.

The questionnaire is a mandatory documentation requirement in Double Taxation Treaty between Germany and USA. A decree from German ministry of finance is outstanding if questionnaire will be mandatory documentation requirement for all other DTTs too.

When respective applicant submits tax reclaims to German Central Tax Authority (“BZSt”) without the questionnaire then processing will be put on hold and questionnaire will be requested by BZSt separately.    

Clearstream Banking expressly disclaims liability for errors or omissions in its information for filling in the questionnaire. Clearstream Banking does not warrant the accuracy or completeness of such information. This message does not constitute legal or tax advice. Clearstream Banking Customers are requested to consult their own legal and tax advisers concerning the filling in of the questionnaire. Clearstream Banking accepts no liability or consequential liability for any action taken based on the information provided herein.

Questions and Answers concerning the Resident Entitlement Questionnaire:
Questions	Answers
Name and Domicile of Investment Company?	Name and domicile of the applicant (Investment Company)
Name and ISIN of the Investment Fund / Investment Asset Pool?	Applicant must enter the ISIN under which the Funds Company distributes the profits earned from their investment to the investor/owner of the Investment Funds (usually via the funds distribution via an income event for a specific ISIN). If the Investment Funds do not distribute via funds distribution via a special income event for a  specific ISIN then the field must be left empty.
Day of Distribution (ex-date) of the Investment Fund?	This must be the last day of the business year end (the usual Ex-date of the income event of the funds distribution) of the Investment Funds Company (applicant). This “Ex-day” must be after the dividend payment days and must not be one of the Ex-days mentioned in the tax reclaiming form section "VI. Dividends and/or interests taxed". Example: Business year end of the Funds Company (applicant) is 31 December this year and Ex-days/Payment days mentioned in the tax reclaiming form section "VI. Dividends and/or interests taxed" is 15. The reclaim can be started after next year end (31 December) and data from that year-end-closing must be entered into the questionnaire.
1.1 Number of shares certificates / investment certificates / units issued (100%).
1.2 Thereof number of shares certificates / investment certificates / units held by residents of the country where the Funds Company is located (%).
2.1 Total number of certificates / investment certificates / units holder (100%).
2.2 Thereof number of persons resident in country in which the Funds Company is located (%).
The data entered in sections 1.1, 1.2, 2.1 and 2.2 must be the data of the business year end (the usual Ex-date of the income event of the funds distribution) of the Investment Funds Company. In most cases, these are the figures from/in the annual business report of the Investment Funds Company. U.S. Investment Funds Companies must enter the data from their last business year (requirement in DTT Germany/USA) and can start reclaim after dividend payment days mentioned in the tax reclaiming form section "VI. Dividends and/or interests taxed". Note: The percentage determined under point 1.2 of the questionnaire should be applied in the section, “VI. Dividends and/or interests taxed” of the application form.  Non-U.S. Funds Companies can start reclaim after their tax year end in which dividends were paid for which they requested taxes back.

Issuing German Tax Vouchers

Tax vouchers are only created at the request of the customer. Before requesting German Tax Vouchers via the BO Upload facility on the Clearstream website, customers must first complete the relevant OTCD which are available on our Tax Forms to use - Germany section:

• Kundenerklärung (CBF) German version
• One-Time Customer Declaration (CBF) English version
• One-Time Customer Declaration (CBL) English version

This must then be sent via mail to:

Clearstream Banking AG
Attn: Tax Support Frankfurt - OSF
D-60485 Frankfurt am Main
Germany

The OTCD needs to be provided on letterhead paper and/or with a company stamp and authorised signatures.

Clearstream Banking may only issue tax vouchers if there is sufficient existing “voucher contingent” per event for the customer. The contingent is the sum of settled positions on entitlement date plus all market claims, sales and purchases compensated by Clearstream Banking in the market claim period.

Accordingly, a continuous check of the voucher contingent is required at customer single-account level. The total amount of issued tax vouchers and outstanding requests must not exceed the total amount of taxes paid. If the voucher contingent is exhausted, no further vouchers will be created and every subsequent open application will (until the voucher contingent is renewed) be answered with a rejection letter.

Note: Contingent check to create Tax Vouchers can only be guaranteed for income payments 10 years in the past (the legal period of safekeeping). 

Application for a tax voucher

The Clearstream Banking customer can file an application for a single tax voucher (“Einzelsteuerbescheinigung”) with respect either to their own assets or to those of their client.

An application for a German tax voucher with respect to a Clearstream Banking customer’s assets must normally be made via electronic upload of a data file in the name of beneficial owner/end-investor of the capital income (see Upload BO List on the Clearstream website).

Tax vouchers are issued after the completion of the market claims process (20 business days after payment date). The fee for the issuance of a German tax voucher is set out in the Clearstream Banking Fee Schedule in effect at the relevant time.

If the tax amount to be certified in the tax voucher(s) requested by a Clearstream Banking customer (on their own behalf or on behalf of their client(s)) exceeds the amount of the tax actually deducted for an event, Clearstream Banking will reject the application for a tax voucher.

Note: Clearstream Banking accepts tax voucher requests only via electronic upload. Clearstream Banking cannot offer any prioritisation or process ordering service for the uploaded files.

Furthermore, the current Recovery Directive Implementation Act (Beitreibungsrichtlinie-Umsetzungsgesetz ("BeitrRLUmsG")) provides for an accumulative tax voucher (“Sammelsteuerbescheinigung“) used in the context of the refund, by the domestic credit institution and ultimate custodian, of withholding tax that has been retained twice (if given). The application for such a voucher may only be filed for shares that were acquired “cum-dividend”and delivered “cum-dividend” (that is, so-called “cum-cum-constellation”; “cum-ex-trades” are not covered).

Clearstream Banking treats an accumulative tax voucher like a single tax voucher. The application for an accumulative tax voucher suspends the issuance of a single tax voucher (including the forwarding of the application for a single tax voucher) for taxes retained on the same capital income. Clearstream Banking Frankfurt ² will issue accumulative tax vouchers according to the legal requirements and will mark each accumulative tax voucher as such.

Note: The accumulative tax voucher is a special form of a single tax voucher but can only be requested by German depository banks for their positions in non-domestic depository chain.

The Clearstream Banking customer must specify the application for a German tax voucher as one of the following:

• Derived Official template I ("PV") from the German Tax Authorities for personal assets (Privatvermögen) - to be used for private individuals subject to tax in Germany for their tax assessment with the local tax office; or
• Official template III ("BV") from the German Tax Authorities for funds from business capital (Betriebsvermögen) - to be used for non-private individuals subject to tax in Germany for their tax assessment with the local tax office or for investors not subject to tax in Germany for reclaiming tax based on a Double Taxation Treaty (DTT) with the central tax office Bundeszentralamt für Steuern “BZSt”.
• Official template IV ("SB") accumulative tax voucher from the German Tax Authorities only for German depository banks with positions in non-domestic depository chain.

Please see “Examples of German Tax Vouchers” in Announcement A12140, dated 25 July 2012.

Note: If the Clearstream Banking customer does not specify the type of request as for a tax voucher with regard to the template to be used, then Clearstream Banking must assume that application is made for a tax voucher for an investor not subject to tax in Germany for reclaiming tax based on a DTT with the central tax office (Official Template III - “BV”).

In letter IV C 1 - S 2401/08/10001:007 (DOK 2011/1041094) from 29 December 2011, the German Ministry of Finance (MoF) published the final draft of the accumulative tax voucher, requiring that it show the following:

• The original date of request by the German depository that applied for the accumulative tax voucher; and
• The name and address of any other subcustodian(s), the Clearstream Banking customer being the first subcustodian in the depository chain.

Note: In the case of an application for an accumulative tax voucher (Official Template IV - “SB”), Clearstream Banking assumes that the day of the data file transfer or date of issuance of the application form is the date of application of the German depository that asked for the accumulative tax voucher.

It is the customer’s responsibility to check and order the correct tax voucher; Clearstream Banking is not in a position to check whether the chosen tax voucher template is the correct one.

Reasons for rejection, usage and description of electronic CSV upload data file (Upload BO List)

• Upload processing rejections can be avoided by following the formats/digits (please see description of CSV file below) and by using a dot “.” as a separator for fractions/decimals.
• A comma "," should not be used as a separator in your file when ordering German Tax Vouchers.
• Uploaded BO List must be rejected when customer uses their own CSV file format, adds new “columns”, deletes columns and/or renames headers (clearness of instruction will be lost).
• Customers should prevent blank lines and should not enter comments and notices in the CSV file.
• Special characters, for example, “/” and space characters, for example, after ISIN must be avoided.
• Mutated vowels can be used. 
• Uploaded file must be a CSV file and not a saved Excel file named csv.
• CBL customers must fill in the File Upload Information with their five digit CBL account number, but must enter account number “7201” in the CSV file (please see description of CSV file below).
• CBF customers must enter their four digit Master account number, for example, 1234 in the File Upload Information and CSV file (please see description of CSV file below).
• Each Upload BO List shall be including requests for Tax Vouchers for the same dividend year. 

Note: Rejected uploaded requests for German Tax Vouchers, returned original Tax Vouchers and/or requests for duplicates will be charged in each case.

Description of electronic CSV upload data file

Field name	Format	M / O	Description
ISIN	Alphanumeric (12 digits)	M	ISIN
BID (filled by CBF)	Alphanumeric (34 digits)	N/A	Filled by CBF
Ex-Date	Date (10 digits)	M	Ex-date for equities or funds, payment date for convertible bonds
Account Master	Numeric (4 digits)	M	Clearstream Customer account number (from tax point of view it is the account number of CBF customer) a) For CBL customers it must be filled with the number “7201” b) For CBF customers it must be filled with account number of the customer, and not of the applicant
Nominal	Numeric (10,3)	M	Nominal
Name	Alphanumeric (34 digits)	M	Name of investor/beneficiary
Address 1	Alphanumeric (34 digits)	M	Address 1 of the investor/beneficiary
Address 2	Alphanumeric (34 digits)	O	Address 2 of the investor/beneficiary
Address 3	Alphanumeric (34 digits)	O	Address 3 of the investor/beneficiary
Address 4	Alphanumeric (34 digits)	O	Address 4 of the investor/beneficiary
Address 5	Alphanumeric (34 digits)	O	Address 5 of the investor/beneficiary
Name of 2nd foreign depository	Alphanumeric (34 digits)	O	Only necessary for accumulative tax vouchers = name of Zwischenverwahrer/2nd foreign depository
Address of 2nd foreign depository	Alphanumeric              (34 digits)	O	Only necessary for accumulative tax vouchers = address of Zwischenverwahrer/2nd foreign depository
Date of request	Date (10 digits)	O	Only necessary for accumulative tax vouchers = date of request by end investor/depository bank -> If not filled, date of csv file transfer is assumed
Kind of tax voucher	Alphanumeric (2 digits)	O	PV = Privatvermögen/personal assets or BV = Betriebsvermögen/business capital or SB = Sammelsteuerbescheinigung/collective tax vouher -> If field is not filled, BV is assumed
Event type (filled by CBF)	Numeric (3 digits)	n.a.	Filled by CBF
KADI Run Number (filled by CBF)	Numeric (5 digits)	n.a.	Filled by CBF
Upload reference	Alphanumeric	n.a.	Filled by CBF planned for release in 2016

Special reclaim process for German accumulation/growth funds

The applicant must reclaim, by accumulation of funds under the same tax voucher, through two different channels:

With regard to the domestic dividend part (inländischer Dividendenanteil), through the Federal Central Tax Office “BZSt”; and

With regard to the interest part (Zinsanteil), through the fund company or fund management company (Kapitalanlagegesellschaft).

In such cases, it has been agreed, between the responsible department in the BZSt (St III 3) and the responsible supervisory department in the German MoF (BMF IV B 3) that the applicant can request, without need of a form that the BZSt return the original tax voucher, which the BZSt will do before the completion of the application processing.

Special reclaim process for German ADRs

A reclaim of withholding tax on German American Depository Receipts (ADRs) is available if the beneficial owner qualifies for the benefit of a reduced rate of withholding tax in accordance with a DTT between its country of residence and Germany.

A tax voucher is required for a tax reclaim with the BZSt. Following decree IV C 1 - S 2204/12/10003 DOK 2013/0457359 of 24 May 2013 by the German MoF, the German Tax Voucher (template III) can only be issued by the "Hinterlegungsbank" (depository bank) of the underlying German security.

Clearstream Banking is not a "Hinterlegungsbank" in this context. The ADR holder must request, via the ADR agent in the depository chain, a single tax voucher from the respective “Hinterlegungsbank“. Clearstream Banking can only forward such request to its depository bank for German ADRs.

Based on the fact that a payment on a German ADR will be taxed a second time when a German depository bank distributes such payment to its customers, the processing for German depository banks to request a “Sammel-Steuerbescheinigung” / accumulative tax voucher (Official Template IV - “SB”) to avoid the double taxation will be the same as for German securities in a foreign depository chain. See decree IV C 1 - S 2401/08/10001 :007 DOK 2013/0848438 of 16 September 2013 by the German MoF.

Unfortunately, Clearstream Banking must reject all requests to issue German Tax Vouchers for German ADRs. Clearstream Banking is not in the position to assist customers because the U.S. depositories do not support any kind of tax issues and forward such requests to Globe Tax, but Globe Tax demand upfront a significant fee without giving a guarantee for successful processing.

Clearstream Banking is in discussion about this situation with the German ministry of finance and will continue to monitor the situation and inform customers of any relevant changes.

Further information

For further information about procedures, customers may contact the Clearstream Banking Tax Help Desk, Clearstream Banking 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.