U.S.A.: FATCA Notification service update
Effective
1 July 2014
to coincide with the introduction of FATCA withholding on U.S. source Fixed or Determinable Annual or Periodical payments income (FDAP) for particular categories of customers, including Nonparticipating FFIs (NPFFI), Clearstream Banking1 and LuxCSD2 will introduce a number of enhancements to their current service offering to accommodate FATCA; these enhancements include:
- An updated FATCA Tax Information Processing (TIP) notification via SWIFT MT568 and CreationOnline to inform customers that are subject to FATCA withholding that they have a pending receipt for a security whose FDAP income may be subject to the FATCA 30% withholding tax.
This notification is performed only for the initial holding in such a security and is not resent if any additional holdings in that security are acquired. - An extension of the currently existing MT564 and CreationOnline notifications to include those FDAP income events and customers that may be subject to FATCA. This will be present in the additional text field (:70E:).
These notifications are sent 14 calendar days before payment date to customers who are potentially subject to FATCA withholding and have a position in the security. - The introduction of new FATCA MT564 and CreationOnline notifications to include FDAP income events for securities that are eligible for the FATCA 30% withholding and customers having transferred withholding responsibility to Clearstream Banking or LuxCSD. This will be present in the additional text field (:70E:).
Customers who elect to transfer their withholding responsibility to Clearstream Banking or LuxCSD will be notified 14 calendar days before payment date to instruct the allocation that is subject to FATCA.
Customers are reminded five calendar days before payment date to instruct for any remaining uninstructed balance. Accounts for which an allocation is required will automatically have the default FATCA withholding tax rate of 30% for any uninstructed holding applied. - The inclusion of FATCA within the US Withholding Tax information via CreationOnline. This details all payment and tax information in both the original currency and USD. Clearstream Banking and LuxCSD will continue to report currently existing Chapter 3 (QI Regime) income/recipient and exemption codes in CreationOnline.
Note: The above mentioned enhancements have been introduced to assist customers in efficiently managing FATCA and will complement, and not be in place of, the services encompassing the QI regime.
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).
2. LuxCSD referes to LuxCSD S.A., registered office at 43, avenue Monterey, L-2163 Luxembourg and registered with the Luxembourg Register of Commerce and Companies under number B-154.449.