Belgium: New tax procedure for equities and certain bonds
Effective
immediately
our local custodian has confirmed that, to obtain relief of withholding tax on income from Belgian equities and from debt securities deposited with Euroclear Belgium (CIK SA/NV), the procedure described below must be followed.
Note: This procedure does not apply to debt securities integrated into the X/N system of the National Bank of Belgium (NBB).
Impact on customers
After submission of the required certification, the following categories of final beneficial owner may obtain reduced tax rates as indicated:
| Eligible beneficial owners | - - - - - - - Interest - - - - - - - | - - - - - - - Equities - - - - - - - | ||||
| Relief at source | Quick Refund | Standard Refund | Relief at source | Quick Refund | Standard Refund | |
| Residents of DTT countries | Not available | DTT rate | DTT rate | Not available | DTT rate | DTT rate |
| Supranational and international organisations a | Not available | 0% | 0% | 0% | 0% | 0% |
| Foreign eligible pension funds b | Not available | DTT rate | DTT rate | 0% | 0% | 0% |
a. The list of the currently recognised international organisations in Belgium is available on the website of the Belgian Ministry of Finance.
b. A Foreign pension fund is eligible for exemption if it is: not engaged in a commercial activity; tax-exempt in its country of residence and exempt (according to Belgian domestic law) from Belgian withholding tax on its income.
Beneficial owners that are not eligible for tax relief or do not certify within the prescribed deadlines will be taxed at the maximum rate of 25%.
Belgian debt securities deposited with Euroclear Belgium (CIK SA/NV) - Documentation requirements
For relief at source
Relief at source from withholding tax is not officially granted by Belgian legislation and, therefore, it is not available through Clearstream Banking3.
For quick refund
A quick refund of withholding tax is available, within the prescribed deadlines, if the issuer or paying agent accepts the amendment of the tax rate after payment date and if the tax withheld at source has not been remitted to the Belgium Tax Authorities.
Note: Clearstream Banking can give no guarantees with regard to the quick refund procedure as it is based on market practice and all applications depend on the good will of the paying agent. Although Clearstream Banking will assist customers with quick refund applications, it can remit to customers' accounts only the amounts that it receives.
To apply for a quick refund of withholding tax on interest from Belgian debt securities held at Euroclear Belgium (CIK SA/NA), the following documentation must be submitted to Clearstream Banking:
- Form 276 Int.-Aut. (or together with a Certificate of Residence if Section IV in Form 276 Int.-Aut. is not completed) - for DTT residents
The form, duly completed by the beneficial owner (or by his legal representative based on a Power of Attorney also to be provided) and by the beneficial owner’s local tax authorities, must be submitted to Clearstream Banking with each quick refund application. The beneficial owner has also the possibility to submit Form 276 Int.-Aut. (with Section IV not completed by his local tax authorities) together with a Certificate of Residence. In such a case, the Certificate of Residence remains valid for one calendar year.
Or - Attestation d’Exonération du Précompte Mobilier Non-Résidents for Supranational and International organisations.
The form, duly completed by the beneficial owner’s authorised representative, must be provided once with the first quick refund application and remains valid until further renewal request from the Belgian Tax Authorities.
And, for all types of beneficial owner:
- An original Credit Advice provided by the last intermediary in the chain having the beneficial owner’s account on its books.
- Chain of Power of Attorney granted by the beneficial owner to the last intermediary and by each intermediary to the subsequent one. Such chain starts with the beneficial owner and ends with Clearstream Banking. The original Power of Attorney must be provided once, and a copy with each quick refund application.
- A per-payment corporate action instruction containing the following details:
- Attn: PTR Tax Services;
- RE: Quick Refund;
- ISIN code;
- Payment date;
- CBL customer’s account;
- Name, legal status, address, country of the beneficial owner;
- Quantity;
- Tax rate to be applied.
The per-payment instruction is a tax breakdown that must be sent, to the attention of PTR TAX SERVICES, either via CreationOnline or by a formatted SWIFT MT565 message.
Deadline for quick refund
Documentation must be received by Clearstream Banking at the latest by 10:00 CET on the third business day after the respective dividend payment date. When are refunds received
The estimated time for receiving a quick tax refund is one month from the date of receipt of the documents by the Belgian Tax Authorities.
For standard refund
A standard refund of withholding tax is available, within the prescribed deadlines, if the deadline for quick refund has not been met.
To apply for a standard refund of withholding tax on interest from Belgian debt securities held at Euroclear Belgium (CIK SA/NV), the following documentation must be submitted to Clearstream Banking:
- Form 276 Int.-Aut. (or together with a Certificate of Residence if Section IV in Form 276-Int.-Aut. is not completed) - for DTT residents
The form, duly completed by the beneficial owner (or by his legal representative based on a Power of Attorney also to be provided) and by the beneficial owner’s local tax authorities, must be submitted to Clearstream Banking with each standard refund application. The beneficial owner has also the possibility to submit Form 276 Int.-Aut. (with Section IV not completed by his local tax authorities) together with a Certificate of Residence. In such a case, the Certificate of Residence remains valid for one calendar year.
Or - Attestation d’Exonération du Précompte Mobilier Non-Résidents for Supranational and International organisations.
The form, duly completed by the beneficial owner’s authorised representative, must be provided once with the first standard refund application and remains valid until further renewal request from the Belgian Tax Authorities.
And, for all types of beneficial owner:
- Chain of original Credit Advices provided for each standard refund application by each intermediary between the final beneficial owner and Clearstream Banking.
- Chain of Power of Attorney granted by the beneficial owner to the last intermediary and by each intermediary to the following one. Such chain starts with the beneficial owner and ends with Clearstream Banking. The original Power of Attorney must be provided once, and a copy with each standard refund application.
- A Letter of Request to Clearstream Banking for Reclaim of Belgian Withholding Tax.
Deadline for standard refund
Documentation must be received by Clearstream Banking at the latest two months before the statutory deadline, which is five years after the end of the calendar year in which the income is paid. When are refunds received
The estimated time for receiving a standard tax refund is 18 to 24 months from the date of receipt of the documents by the Belgian Tax Authorities.
Belgian Equities - Documentation requirements
For relief at source
Relief at source from withholding tax on dividends from Belgian equities is available to the following beneficial owners only:
- Supranational and international organisations ; and
- Foreign eligible pension funds;
provided that the following documentation has been submitted within the prescribed deadlines:
- Form 229 - for supranational and international organisations
The form, duly completed by the beneficial owner (or by his legal representative based on a Power of Attorney also to be provided), must be submitted to Clearstream Banking. Form 229 must be provided once before the first dividend payment date and is valid until further renewal request from the Belgian Tax Authorities.
Or - Annex 26 - for foreign eligible pension funds
The form, duly completed by the beneficial owner (or by his legal representative based on a Power of Attorney also to be provided), must be submitted to Clearstream Banking once before the first dividend payment and is valid until further renewal request from the Belgian Tax Authorities.
And for all types of beneficial owner:
- A per-payment corporate action instruction containing the following details:
- Attn: PTR Tax Services;
- RE: Relief at source;
- ISIN code;
- Payment date;
- CBL customer’s account;
- Name, status, address, country of the beneficial owner;
- Quantity;
- Tax rate to be applied.
The per-payment instruction is a tax breakdown that must be sent, to the attention of PTR TAX SERVICES, either via CreationOnline or by a formatted SWIFT MT565 message.
Deadline for relief at source
Form 229 or Annex 26 must be received by Clearstream Banking at the latest by 10:00 CET on the fifth business day before the first dividend payment date.
The per-payment corporate action instruction must be received by Clearstream banking at the latest by 10:00 CET on the second business day before payment date.
For quick refund
A quick refund of withholding tax is available, within the prescribed deadlines, if the deadline for relief at source has not been met, if the issuer or paying agent accepts the amendment of the tax rate after payment date and if the tax withheld at source has not been remitted to the Belgium Tax Authorities.
Note: Clearstream Banking can give no guarantees with regard to the quick refund procedure as it is based on market practice and all applications depend on the good will of the paying agent. Although Clearstream Banking will assist customers with quick refund applications, it can remit to customers' accounts only the amounts that it receives.
To apply for a quick refund of withholding tax on dividends from Belgian equities, the following documentation must be submitted to Clearstream Banking:
- Form 276 Div.-Aut. (or together with a Certificate of Residence if Section IV in Form 276-Div.-Aut. is not completed) - for DTT residents
The form, duly completed by the beneficial owner (or by his legal representative based on a Power of Attorney also to be provided) and by the beneficial owner’s local tax authorities, must be submitted to Clearstream Banking with each quick refund application. The beneficial owner has also the possibility to submit Form 276 Div.-Aut. (with Section IV not completed by his local tax authorities) together with a Certificate of Residence. In such a case, the Certificate of Residence remains valid during the calendar year of the payment.
Or - Form 229 - for supranational and international organisations
The form, duly completed by the beneficial owner (or by his legal representative based on a Power of Attorney also to be provided), must be submitted to Clearstream Banking. Form 229 must be provided once with the first quick refund application and is valid until further renewal request from the Belgian Tax Authorities.
Or - Annex 26 for foreign eligible pension funds
The form, duly completed by the beneficial owner (or by his legal representative based on a Power of Attorney also to be provided), must be submitted to Clearstream Banking once with the first quick refund application and is valid until further renewal request from the Belgian Tax Authorities.
And, for all types of beneficial owner:
- An original Credit Advice provided by the last intermediary in the chain having the beneficial owner’s account on its books.
- Chain of Power of Attorney granted by the beneficial owner to the last intermediary and by each intermediary to the subsequent one. Such chain starts with the beneficial owner and ends with Clearstream Banking. The original Power of Attorney must be provided once, and a copy with each quick refund application.
- A per-payment corporate action instruction containing the following details:
- Attn: PTR Tax Services;
- RE: Quick Refund;
- ISIN code;
- Payment date;
- CBL customer’s account;
- Name, status, address, country of the beneficial owner;
- Quantity;
- Tax rate to be applied.
The per-payment instruction is a tax breakdown that must be sent, to the attention of PTR TAX SERVICES, either via CreationOnline or by a formatted SWIFT MT565 message.
Deadline for quick refund
Documentation must be received by Clearstream Banking at the latest by 10:00 CET on the third business day after the respective interest payment date. When are refunds received
The estimated time for receiving a quick tax refund is one month from the date of receipt of the documents by the Belgian Tax Authorities.
For standard refund
A standard refund of withholding tax is available, within the prescribed deadlines, if the deadline for relief at source or quick refund has not been met.
To apply for a standard refund of withholding tax on dividends from Belgian equities, the following documentation must be submitted to Clearstream Banking:
- Form 276 Div.-Aut. (or together with a Certificate of Residence if Section IV in Form 276 Div.-Aut. is not completed) - for DTT residents
The form, duly completed by the beneficial owner (or by his legal representative based on a Power of Attorney also to be provided) and by the beneficial owner’s local tax authorities, must be submitted to Clearstream Banking with each standard refund application. The beneficial owner has also the possibility to submit Form 276 Div.-Aut. (with Section IV not completed by his local tax authorities) together with a Certificate of Residence. In such a case, the Certificate of Residence remains valid during the calendar year of the payment.
Or - Form 229 - For supranational and international organisations
The form, duly completed by the beneficial owner (or by his legal representative based on a Power of Attorney also to be provided), must be submitted to Clearstream Banking. Form 229 must be provided once with the first standard refund application and is valid until further renewal request from the Belgian Tax Authorities.
Or - Annex 26 for foreign eligible pension funds
The form, duly completed by the beneficial owner (or by his legal representative based on a Power of Attorney also to be provided), must be submitted to Clearstream Banking once with the first standard refund application and is valid until further renewal request from the Belgian Tax Authorities.
And, for all types of beneficial owner:
- Chain of original Credit Advices provided for each standard refund application by each intermediary between the final beneficial owner and Clearstream Banking.
- Chain of Power of Attorney granted by the beneficial owner to the last intermediary and by each intermediary to the subsequent one. Such chain starts with the beneficial owner and ends with Clearstream Banking. The original Power of Attorney must be provided once, and a copy with each standard refund application.
- A Letter of Request to Clearstream Banking for Reclaim of Belgian Withholding Tax.
Deadline for standard refund
Documentation must be received by Clearstream Banking at the latest two months before the statutory deadline, which is five years after the end of the calendar year in which the income is paid. When are refunds received
The estimated time for receiving a standard tax refund is 18 to 24 months from the date of receipt of the documents by the Belgian Tax Authorities.
Further information
For further information, customers may contact the Clearstream Banking Tax Help Desk on:
| Luxembourg | Frankfurt | |
| Email: | tax@clearstream.com | tax@clearstream.com |
| Telephone: | +352-243-32835 | +49-(0) 69-2 11-1 3821 |
| Fax: | +352-243-632835 | +49-(0) 69-2 11-61 3821 |
or Clearstream Banking Customer Service or their Relationship Officer.
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1. Clearstream Banking refers to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).
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