Brazil: Potential impact of new tax regulation on dividend withholding tax clarified
Our depository has confirmed that, following the clarification of the Transition Tax Regime through the Normative Instruction 1.397/13, any excess dividend distributed should be subject to 15% or 25% withholding tax, based on the tax jurisdiction of the beneficial owner.
This is further to our Taxflash LT13101, dated 19 November 2013.
Impact on customers
The new regulation has no impact on customers of Clearstream Banking1. The issuer is responsible for the announcement, withholding and payment of the tax amount to the Brazilian Tax Authorities when applicable.
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 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 (CBF) and 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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