General information - types of securities, deadlines, other market specifics - Estonia
Types of securities eligible in LuxCSD
The eligible securities issued in Estonia are as follows:
- Government bonds;
- Corporate bonds;
- Commercial paper
- Municipal bonds
- Equities.
- Investment funds
Withholding tax Services
Government bonds, corporate bonds, commercial paper and municipal bonds | |||
Beneficial owner | Relief at | Quick | Standard |
No withholding tax is deducted on interest from Estonian debt securities held in LuxCSD. | NA | NA | NA |
Equities | Relief at | Quick | Standard |
Beneficial owner | |||
Non-resident legal entity | Yes | Yes | Yes |
Non-resident individual of a DTT country | No | Yes | Yes |
Estonian resident legal entity (until the recipient makes a distribution of profits) | Yes | Yes | No |
Investment funds | Relief at | Quick | Standard |
Beneficial owner |
|
|
|
Non-resident legal entity | Yes | Yes | Yes |
Non-resident individual of a DTT country | No | Yes | Yes |
Estonian resident legal entity (until the recipient makes a distribution of profits) | Yes | Yes | No |
Applicable default withholding tax rates
The default rates of withholding tax applicable in LuxCSD on income paid on Estonian securities are as follows:
- 0% on interest from government bonds;
- 0% on interest from corporate bonds;
- 0% on interest from municipal bonds;
- 0% on interest from Commercial paper;
- 0/7% on dividend from equities:
- - 0% if the dividend is paid from irregular profit distribution that is subject to 20% income tax; and
- - 7% if the dividend is distributed by an Estonian company subject to the lower corporate income tax rate of 14%).
- 0/7% on dividends from investment funds:
- 0% if the dividend is paid from irregular profit distribution that is subject to 20% income tax; and
- 7% if the dividend is distributed by an Estonian investment fund subject to the lower corporate income tax rate of 14%).
Holding restrictions
please refer to the “Investment regulation” section of the LuxCSD Market Profile - Estonia
Capital Gains Tax
There is no capital gains tax withheld through LuxCSD on securities held in LuxCSD. Capital gains tax may however be payable on specific gains. LuxCSD does not assist in this regard. Please consult your tax advisor for further information.
Stamp Duty
There is no stamp duty withheld through LuxCSD on securities held in LuxCSD. Stamp duty may however be payable on specific transactions. LuxCSD does not provide assistance in this regard. Please consult your tax advisor for further information.
Deadlines for relief at source, quick refund and standard refund
Relief at source
In order to benefit from tax relief at source on Estonian equities or investment funds, customers must ensure that the accurate documentation is submitted by the following deadlines:
Documentation | Deadline |
One-Time Certificate for Estonian Equities or Investment funds |
|
Breakdown of holdings |
|
Certificate of tax residence | Upon request |
Other supporting documentation | Upon request |
Quick refund
In order to benefit from quick refund on Estonian equities or investment funds, customers must ensure that the accurate documentation is submitted by the following deadlines:
Documentation | Deadline |
One-Time Certificate for Estonian Equities or Investment Funds | at the latest 9 months after the PD for which QR is required |
Breakdown of holdings | at the latest 9 months after the PD for which QR is required |
Certificate of tax residence | at the latest 9 months after the PD for which QR is required |
Declaration of Beneficial Ownership | at the latest 9 months after the PD for which QR is required |
Power of attorney | at the latest 9 months after the PD for which QR is required |
Certificate of tax residence | Upon request |
Other supporting documentation | Upon request |
The estimated time for receiving a refund is up to 30 calendar days from the date on which LuxCSD receives the certified documents for quick refund, although this can vary depending on the issuer and when the application is filed.
Standard refund
The statutory deadline for reclaiming withholding tax using the standard refund procedure is three years following the dividend payment date that was subject to tax.
The deadline by which LuxCSD must receive the documentation for a standard refund , at the latest, three months before the statutory deadline. All standard refund applications received after this deadline will be processed by LuxCSD on a “best-efforts” basis. However, in such cases, LuxCSD will apply an extra charge and accepts no responsibility for forms that have not reached the Estonian Tax Authorities by the date considered being the statute of limitations deadline.
For tax reclaims, you are reminded that LuxCSD accepts no responsibility for their acceptance or rejection by the tax authorities of the respective country. It is the customer’s responsibility to determine any entitlement to a refund, to complete the forms required correctly and to calculate the amount due.
When are refunds received
The estimated time for receiving a refund is 60 calendar days from the date on which LuxCSD receives the certified documents for standard refund, although this can vary depending on when the application is filed, and the complexity of the information supplied in the reclaim form.