Quick refund - eligibility, documentation, deadlines - French equities (securities held in CBF)

26.02.2019

Who can apply for a quick refund?

A quick refund of withholding tax on dividends from French equities is available to eligible beneficial owners if relief at source has not been obtained, as follows:

Eligible beneficial owners

Effective rate of tax
after refund

Tax refund
available a

Residents of Double Taxation Treaty (DTT) countries

Tax treaty rate or 30%, whichever is lower

30% minus
the tax treaty rateb

Foreign CIVs

0% or 15% when dividend of SIIC or SPICAV

30% or 15%

EU Parent Company

Tax treaty rate or 0%

30% minus
the tax treaty rateb or 30%

Not-for-profit organisations

15%

15%

Foreign tax-exempt entities

0%

30%

Particular foreign entities

Tax treaty rate or 30%, whichever is lower

30% minus
the tax treaty rateb

a. Expressed as a percentage of the gross dividend amount.
b. Amount of relief will be 0% if the DTT rate exceeds 30%.

__________________________

Documentation requirements

There are different documentation requirements depending on the residence status and legal status of the beneficial owner, as follows:

Residents of Double Taxation Treaty (DTT) countries

  • Form 5000 Certificate of Residence;
  • One-Time Certificate for French securities;
  • Corporate action instruction, if applicable;
  • Per-payment Detailed List of Beneficial Owners, if applicable;
  • Power of Attorney, if applicable;

plus, if the beneficial owner is not a newly created investment scheme (other than foreign CIVs):

  • A Form 5000 Attestation of Percentage (which, if the accounting period does not cover all the payments for which the relief is requested, must indicate the follow-up accounting period), signed by the beneficial owner, not by the fund’s local tax authorities;

or, if the beneficial owner is a newly created investment scheme (other than foreign CIVs):

  • A first Form 5000 Attestation of Percentage with the first accounting period, with "Newly created fund" mentioned in Box II, signed by the beneficial owner, not by the fund’s local tax authorities; and
  • A Letter (self declaration) stating the date of establishment of the newly created fund, duly completed and signed by the fund; and
  • If the accounting period does not cover all the payments for which the relief is requested, a Form 5000 Attestation of Percentage indicating the follow-up accounting period, signed by the beneficial owner, not by the fund’s local tax authorities.

Foreign CIVs

  • One-time certificate for French securities;
  • RPPM (revenus et profits du patrimoine mobilier) form;
  • Corporate Action Instruction, if applicable;
  • Per-payment Detailed List of Beneficial Owners, if applicable.

Form descriptions are presented according to the procedures available for relief or reclaim of withholding tax on income from French equities.

EU parent companies

  • Form 5000 - Certificate of Residence;
  • Form 5001 - Calculation and repayment of withholding tax on dividends (must be printed on both sides, but only the details of the second page must be completed);
  • Self-certification for qualified European Parent Companies;
  • Corporate action instruction, if applicable.

Not-for-profit organisations (except for U.S. residents - see below)

To qualify for relief as a not-for-profit organisation, a Not-for-Profit Organisations Certificate must be obtained by submitting the following documentation directly to the Direction des Impôts des Non-Résidents (DINR).

  • Questionnaire;
  • The founding documents of the beneficial owner’s organisation.
  • A copy of the minutes of the General Assembly meetings and the budgets detailing the main revenue and expenditure items and, if the case arises, copies of the directors’ pay slips for the last three financial years.
  • Other supporting documentation upon request (for example, proving the place of establishment of the organisation).

N.B.: Submission of the above-mentioned documents is only a precondition for obtaining the certificate. The DINR will decide whether or not to issue the certificate, based on their own review of the request. Clearstream Banking is not involved in this process.

When qualified, to obtain relief at source, the following documents must also be submitted to Clearstream Banking:

  • Not-for-Profit Organisations Certificate;
  • Corporate action instruction, if applicable.

Foreign exempt entities

  • One-time certificate for French securities;
  • One-time Attestation Article 131 sexies
  • Copy of the DLF Agreement letter (for 131 sexies II only)
  • Corporate action instruction, if applicable.

Particular foreign entities 

For all of the below entities:

  • One-time certificate for French securities;

GBRs

  • Form 5000 Certificate of Residence for each partner, with the partner's personal profession (not the status of the GBR) in the “profession” field;
  • An original GBR attestation, under the letterhead of the GBR, signed by the legal representative of the GBR, confirming the percentage of the rights of each associate in the GBR and the regime of tax transparency from which the GBR benefits in its country of residence and corresponding to the data from the last general assembly. The document is required on an annual basis, issued after the last general assembly and should be valid for less than one year at pay date.
  • A cover letter with the names of all the partners applying for the simplified procedure and certifying that these names are part of the relevant GBR;
  • Per-payment Corporate Action Instruction,if applicable;
  • Per-payment Detailed List of Beneficial Owners, if applicable.

GmbH & Co. KG, KG, OHR companies:

  • That have opted for the corporate tax
    • Form 5000 Certificate of Residence in the name and status of the company;
    • An original attestation, confirming that the company has opted for the corporate tax;
    • Per-payment Corporate Action Instruction, if applicable;
  • That have opted for the income tax
    • Form 5000 Certificate of Residence in the name of each partner, with the partner's personal profession in the field “profession”. A Form 5000 with the status of the company will be considered as not valid.
    • An original attestation, confirming that the company has opted for the income tax;
    • Per-payment Corporate Action Instruction, if applicable;

UCITSs (other than eligible foreign CIVs), pension funds, charities, foundations/associations, trusts, partnerships etc.

  • Form 5000 Certificate of Residence;
  • Form 5000 Attestation of fund (for investment schemes only);
  • Per-payment Corporate Action Instruction, if applicable;
  • Per-payment Detailed List of Beneficial Owners, if applicable.

U.S. residents

A certificate of residence, provided according to the status of the beneficial owner, as follows:

U.S. pension funds, not-for-profit organisations and U.S. RICs, REITs and REMICs:

  • An IRS Form 6166 (mandatory), confirming the legal status and the Internal Revenue Code section to which it refers, as follows:
    • U.S. pension funds: Status 401 (a), 401 (b), 403 (b) or 457;
    • U.S. Non-profit organisations: Status 501 (c) 3;
    • U.S. RICs, REITs and REMICs: the legal status of the final beneficiary and its tax ID in the U.S., if there is one.
  • Form 5000 non-certified.

Other U.S. resident entities:

  • A certificate of residence in one of the following forms (mandatory):
    • An IRS Form 6166, duly completed and certified by the IRS, replacing the Form 5000 in this case; or
    • A Form 5000 duly completed and certified by the U.S. intermediary in Box VI; or
    • A Form 5000 duly completed and certified by the IRS in BOX IV.

    The above-mentioned certificates of residence remain valid for the fiscal year only and must be provided annually.
    Note: The original certificate of residence must, in all cases, be provided to Clearstream Banking at least one business day before the first dividend payment date to which it applies, by 09:00 CET.
  • Per-payment Corporate Action Instruction, if applicable;
  • Per-payment Detailed List of Beneficial Owners, if applicable.

Deadlines for receipt of documents

Documentation for quick refund of withholding tax on dividends from French equities through the simplified procedure must be received by Clearstream Banking by the following deadlines:

One-Time Certificate for French equities

At the latest, on record date minus one business day of the first dividend payment date to which it applies, by 09:00 CET.

Form 5000 Certificate of Residence

Form 5000 Attestation of Percentage

Form 5001 Calculation of Withholding Tax on Dividendsa

Self-certification for qualified European Parent Companies

RPPM form

One-time Attestation Article 131 sexies

and DLF agreement letter

Non-Profit Organisations Certificate

GBR Attestation

GBR cover letter

Per-payment Detailed List of Beneficial Owners

Generally, at the latest 45 calendar days following the dividend payment date by 09:00 CET.

Corporate Action Instruction

At the latest, by the 10th of the month (or if the 10th is not a business day, the first business day before the 10th) following the one when the payment took place. Customers may adjust the initial tax breakdown before this date and the last tax breakdown provided before above deadline will be considered as final and reported to the FTA.

 a.  For EU parent companies only.

____________________________

Certification timeline for actions by Clearstream Banking customers:

Click on the image to view the diagram showing the timeline for actions by Clearstream Banking customers.