France: Additional guidelines on certification
Effective
immediately
the French Tax Authorities (FTA) have provided additional clarification and reminders with regard to the various certification requirements related to the French taxation rules. The FTA have indicated that they may request any of the following supporting documents and/or additional information, among others, at any time:
Power of Attorney (POA)
A power of attorney must be in place between the beneficial owner (BO) and its representative signing the documents on its behalf. This applies to the Forms 5000 required for relief at source and standard refund, as well as to any other document.
In order to accord with the recent request of the FTA, customers are requested, as of today, to provide Clearstream Banking1 with a copy of the existing POA for each relief/reclaim application. For previously submitted reclaims, the FTA may at any time request a copy of the POA in place.
The POA must be in French or in English. A version in the local language together with a version in French or English is also acceptable but POAs in local language only will automatically be rejected.
| How many are provided? | One per BO and per representative. |
| Who completes it? | The BO. It must be signed, stamped and dated before the first relief/reclaim application. |
| How often is it provided? | One per relief/reclaim application. |
| When is it provided? | Together with the related relief/reclaim documentation. |
| Copy or original? | Copy accepted. Must be in French or English. |
Tax attestation
For specific types of BO (for example, pension funds, investment funds), a tax attestation issued by the BO's local tax authorities is in most cases requested to certify that the respective entity is taxed on its global revenues.
The FTA have specified that such a requested tax attestation cannot be a simple certification of residence but should clearly confirm that the BO is effectively subject to tax on its entire income (including French income).
No template exists for the tax attestation; the format is left to the discretion of the local tax authorities but will be accepted provided that it includes the above-mentioned required content.
| How many are provided? | One per BO. |
| Who completes it? | The BO’s local tax authorities. |
| How often is it provided? | (Relief at source) annually. (Standard refund) per reclaim application. |
| When is it provided? | (Relief at source) before 31 March of the calendar year to which it applies. (Standard refund) together with the set of reclaim documentation. |
| Copy or original? | Original required. Must be in French or English. |
Forms 5000 Certificate of Residence and Attestation of Percentage for investment scheme
A BO that is a collective investment scheme must provide Clearstream Banking with a Form 5000 Attestation of Percentage in addition to the Form 5000 Certificate of Residence.
Form 5000 Certificate of Residence
The Form 5000 Certificate of Residence contains the BO's information and must be signed by both the BO (or its representative under cover of a POA) and the BO's local tax authorities.
As a general rule:
- Box I: "Dividends" must be ticked and:
- For relief at source, "Simplified procedure" must be ticked.
- For standard refund, "Normal procedure" must be ticked.
- Box II must contain the appropriate BO type to specify the "Occupation". (This must match the BO type code used in the uploaded Per Payment Detailed List of BOs.) The legal form of the company (GmbH, SA, SPA, LLP etc.) should be entered in the “Surname and first name, or company name” field and must be in line with the BO type.
- Box III must be completed.
- Box IV must be completed and stamped and signed by the BO's local tax authorities.
- Box V must be left blank.
- Box VII must be left blank.
Form 5000 Attestation of Percentage
The Form 5000 Attestation of Percentage must be completed, dated and signed by the BO (or by the entity representing the BO under cover of a POA) in order to attest to the percentage of resident shareholders during the accounting period in which the income was realised.
As the collective entitlement of such funds and companies to treaty benefits is limited to the portion of their unit holders and shareholders that are residents of their home country, the percentage must be 100% in order to participate in the simplified procedure. If the percentage is less than 100%, the company/fund can submit a reclaim application via the standard refund procedure.
An eligible BO that is a collective investment scheme must, in most cases2, fill in Box VII of Form 5000 to certify the percentage of shareholders eligible under the respective Double Taxation Treaty (DTT) and for the relevant accounting period.
As a general rule:
- Box I: "Dividends" must be ticked and:
- For relief at source, "Simplified procedure" must be ticked.
- For standard refund, "Normal procedure" must be ticked.
- Box II must contain the appropriate BO type to specify the "Occupation". (This must match the BO type code used in the uploaded Per Payment Detailed List of BOs.) The legal form of the company (GmbH, SA, SPA, LLP etc.) should be entered in the “Surname and first name, or company name” field and must be in line with the BO type.
- Box III must be completed.
- Box IV must be left blank.
- Box V must be left blank.
- Box VII must contain the beginning and end dates of the current accounting period and the percentage of shareholders eligible under the respective Double Taxation Treaty (DTT) and for the relevant accounting period.
| How many are provided? | One (or more, if applicable) per BO. |
| Who completes it? | The BO or its representative under Power of Attorney. It must be signed, stamped and dated before the first dividend payment date to which it applies or per reclaim application. |
| How often is it provided? | One (or more, if applicable) per relevant applicable accounting period. |
| When is it provided? | (Relief at source) as soon as the accounting period in which the profit was realised (that is, directly preceding the dividend payment period) is closed but at the latest one business day before the first dividend payment date to which it applies, by 09:00 CET. (Standard refund) together with the set of reclaim documentation. |
| Copy or original? | Original required. Must be in French for the French Tax Authorities. |
Already existing fund
The applicable period starts from the first day following the end date of the accounting period and lasts for the exact number of days of the accounting period plus one year. Example 1 - Accounting period equal to fiscal year
Where the accounting period corresponds to the calendar year, customers are required to provide Clearstream Banking with:
- One Form 5000 Certificate of Residence; and
- One Form 5000 Attestation of Percentage.
| Year | Form 5000 Certificate of Residence, certified by local tax authorities | Separate Form 5000 Attestation of Percentage, not certified by local tax authorities, accounting period in Box VII | Payments covered |
| 2011 | Certified and valid 01/01/2011-31/12/2011 | 01/01/2010-31/12/2010 | 01/01/2011-31/12/2011 |
| - - | - - | - - | |
| 2012 | Certified and valid 01/01/2012-31/12/2012 | 01/01/2011-31/12/2011 | 01/01/2012-31/12/2012 |
Example 2 - Accounting period not equal to fiscal year (first Accounting period: 1 June 2010 - 31 May 2011; new accounting period: 1 June 2011 - 31 May 2012)
Where the accounting period would not correspond to a calendar year, customers are required to provide Clearstream Banking with:
- One Form 5000 Certificate of Residence; and
- Two Forms 5000 Attestation of Percentage per calendar year, reflecting both accounting periods required to cover the respective calendar year.
| Year | Form 5000 Certificate of Residence, certified by local tax authorities | Separate Form 5000 Attestation of Percentage, not certified by local tax authorities, accounting period in Box VII | Payments covered |
| 2011 | Certified and valid 01/01/2011-31/12/2011 | 01/06/2010-31/05/2011 | 01/06/2011-31/12/2011 |
| - - | - - | - - | |
| 2012 | Certified and valid 01/01/2012-31/12/2012 | 01/06/2010-31/05/2011 | 01/01/2012-31/05/2012 |
| and | and | ||
| 01/06/2011-31/05/2012 | 01/06/2012-31/12/2013 |
Newly created fund
Example 1 - Accounting period equal to fiscal year
Where the accounting period corresponds to the calendar year, customers are required to provide Clearstream Banking with:
- One Form 5000 Certificate of Residence; and
- One Form 5000 Attestation of Percentage with “NEWLY ISSUED COLLECTIVE INVESTMENT SCHEME” clearly mentioned in Box II; and
- Letter (self declaration) completed and signed by the fund and stating the date of establishment of the fund.
| Year | Form 5000 Certificate of Residence certified by local tax authorities | Separate Form 5000 Attestation of Percentage with Box VII completed, not certified by local tax authorities | Accounting period - Box VII | Payments covered |
| 2011 | Certified and valid 01/01/2011-31/12/2011 | Non-certified Form 5000 - "newly created funds" in Box II plus self declaration of newly created fund | 01/01/2011-31/12/2011 (first accounting period newly) | 01/01/2011-31/12/2011 |
| - - | - - | - - | - - | |
| 2012 | Certified and valid 01/01/2012-31/12/2012 | Non-certified Form 5000 | 01/01/2011-31/12/2011 (first accounting period) | 01/01/2012-31/12/2012 |
| - - | - - | - - | - - | |
| 2013 | Certified and valid 01/01/2013-31/12/2013 | Non-certified Form 5000 | 01/01/2012-31/12/2012 (second accounting period) | 01/01/2013-31/12/2013 |
Example 2 - Accounting period not equal to fiscal year (first Accounting period: 1 October 2011 - 30 September 2012; new accounting period: 1 October 2012 - 30 September 2013)
Where the accounting period would not correspond to a calendar year, customers are required to provide Clearstream Banking with:
- One Form 5000 Certificate of Residence signed by the BO’s local tax authorities and valid for the calendar year in which the dividends are paid; and
- Two Forms 5000 Attestation of Percentage per calendar year, reflecting both accounting periods required to cover the respective calendar year and with “NEWLY ISSUED COLLECTIVE INVESTMENT SCHEME” clearly mentioned in Box II; and
- Letter (self declaration) completed and signed by the fund and stating the date of establishment of the newly created fund.
| Year | Form 5000 Certificate of Residence certified by local tax authorities | Separate Form 5000 Attestation of Percentage with Box VII completed, not certified by local tax authorities | Accounting period - Box VII | Payments covered |
| 2011 | Certified and valid 01/01/2011-31/12/2011 | Non-certified Form 5000 - "newly created funds" in Box II plus self declaration of newly created fund | 01/10/2011-30/09/2012 (first accounting period newly) | 01/10/2011-31/12/2011 |
| - - | - - | - - | - - | |
| 2012 | Certified and valid 01/01/2012-31/12/2012 | Non-certified Form 5000 - "newly created funds" in Box II | 01/10/2011-30/09/2012 (first accounting period newly) | 01/01/2012-30/09/2012 |
| and | and | and | ||
| Non-certified Form 5000 | 01/10/2011-30/09/2012 (first accounting period bis) | 01/10/2012-31/12/2012 | ||
| - - | - - | - - | - - | |
| 2013 | Certified and valid 01/01/2013-31/12/2013 | Non-certified Form 5000 | 01/10/2011-30/09/2012 (first accounting period bis) | 01/01/2013-30/09/2013 |
| and | and | and | ||
| Non-certified Form 5000 | 01/10/2012-30/09/2013 (second accounting period) | 01/10/2013-31/12/2013 | ||
| - - | - - | - - | - - | |
| 2014 | Certified and valid 01/01/2014-31/12/2014 | Non-certified Form 5000 | 01/10/2012-30/09/2013 (second accounting period) | 01/01/2014-30/09/2014 |
| and | and | and | ||
| Non-certified Form 5000 | 01/10/2013-30/09/2014 (third accounting period) | 01/10/2014-31/12/2014 |
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 the Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking, société anonyme, 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).
2. For investment companies and funds from Spain, Trinidad and Tobago and the U.S.A., treaty benefits apply, as indicated in the notes accompanying Form 5000, to all income received from French sources and, consequently, in these cases, Box VII of Form 5000 should not be filled in.
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