Form descriptions - Immediate and quick refund - Spanish debt securities (securities held in CBF)
Information is provided here about the forms and their use in relation to the procedures for immediate and quick refund of withholding tax on income from Spanish debt securities, as follows;
- OneTime Certificate for Domestic Spanish Debt Securities
- Breakdown of Holdings / Disclosure
- Certificate of Residence
- Spanish Securities Standing Instruction for International or Supranational Organisations and Central Banks
Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Spanish debt securities.
To obtain an immediate refund or apply for a full quick refund, the following documentation is required depending on the types of securities:
1. Domestic bonds subject to RD 1145/2011
One-Time Certificate for Domestic Spanish Debt Securities
The One-Time Certificate must be submitted, for all categories of debt securities (private and public) that fall under the application of RD 1145/2011, before the first applicable interest payment date or with the first quick refund application, and must state that the customer holds the securities in one of the following sets of circumstances:
a. | Exclusively for itself or for one single beneficial owner eligible for tax exemption. By ticking the first box, tax exemption is applied by default at source on all further interest payments and no further certificates are required. If the LuxCSD customer is a Spanish financial institution, the details of the LuxCSD customer are required (even if the securities are held on behalf of a single beneficial owner that is a Spanish corporation). If the LuxCSD customer is a non-resident of Spain but holds the securities on behalf of a single beneficial owner that is a Spanish corporation, the final beneficial owner’s details must be provided. By ticking and completing the first section, the customer authorises LuxCSD to forward its own or the beneficial owner’s details and holdings to the Spanish authorities for each interest payment to the customer’s account, in order to comply with the reporting obligations. | |
OR | b. | Exclusively on behalf of several beneficial owners (including itself, if applicable) that are non-residents of Spain for tax purposes. By ticking the second box, tax exemption is applied by default at source on all further interest payments and no further certificates are required. |
OR | c. |
|
OR | d. | On behalf of beneficial owners that are:
In addition to the One-Time Certificate, the customer is required to submit, before each interest payment, a Breakdown of Holdings/Disclosure as explained below. Furthermore, if the LuxCSD customer or other intermediary in the chain is a Spanish financial institution, the details of the LuxCSD customer/Spanish intermediary are required (even if it holds the securities on behalf of beneficial owners that are residents of Spain). If the LuxCSD customer and the rest of the intermediaries are non-residents of Spain but hold the securities on behalf of beneficial owners that are residents of Spain, the details of the final beneficial owners must be provided in the Breakdown of Holdings/Disclosure |
How many are provided? | One per LuxCSD account. |
Who completes it? | Customer. |
How often is it provided? | Once. Valid until revoked. |
When is it provided? | By the immediate or quick refund deadline for the respective paying agent. |
Copy or original? | Original required. |
Breakdown of Holdings/Disclosure
A Breakdown of Holdings must be submitted, if the customer ticked the fourth box in the One-Time Certificate (that is, the securities are held on behalf of both exempt and non-exempt beneficial owners), and must indicate:
For immediate refund via a formatted SWIFT MT565 or Xact Web Portal consisting in one breakdown per tax rate and residency status indicating:
- Customer account number;
- ISIN code;
- Corp ID;
- Full name and address of Spanish entity (field :95V::OWND//);
- Spanish entity TIN (field :95S::ALTE//TXID/);
- Two letter ISO country code of entity’s country of fiscal residence (field :94C:DOMI//);
- BO securities quantity (field :36B::OWND//);
- If the Spanish entity is the final BO or an Intermediary (field :70E::CETI// with either Final BO or Intermediary as value);
- Total instructed securities quantity;
- Requested tax rate.
For quick refund via SWIFT MT599/MT568 or free-format Xact Web Portal message:
- Customer account number;
- ISIN code;
- Event Corp ID or Income Payment Date;
- The customer’s total holding;
- The total position held on behalf of beneficial owners that are non-residents of Spain
- The total position held on behalf of Spanish corporations;
- The total position held on behalf of Spanish individuals;
- The total position of undisclosed beneficial owners.
Note: The default tax rate will be applied to uninstructed (undisclosed) holdings.
All these declared positions must be accurate at 19:00 CET on the relevant record date (that is, one business day before payment date). If there is a discrepancy between the declared positions and the customer’s total holding visible in LuxCSD’s books, the customer’s application for tax exemption will be rejected and, consequently, the maximum standard tax rate will be applied.
Furthermore, if no Breakdown of Holdings is received by LuxCSD by the prescribed deadline, the customer’s total holding will be considered as uncertified and, as a consequence, the maximum standard tax rate will be applied.
How many are provided? | One per LuxCSD account. |
Who completes it? | Customer. |
How often is it provided? | Per interest payment or quick refund application. |
When is it provided? | By the immediate or quick refund deadline for the respective paying agent. |
Copy or original? | Formatted SWIFT MT565 or Xact Web Portal |
2. Domestic corporate bonds not subject to RD 1145/2011
Certificate of Residence
For each beneficial owner resident in a country that has a Double Taxation Treaty (DTT) in force with Spain, a valid Certificate of Residence must be issued. The Certificate of Residence is considered as valid if:
- It covers the payment date - its validity is for one year from its issuance date and, if it includes a specific tax year, it will also be valid for that year.
- It is issued by the local tax authorities of the beneficial owner’s country of residence.
- It refers to the article of the relevant DTT granting the reduced rate.
- It is duly signed and stamped by the local tax authorities of the beneficial owner’s country of residence.
- It is either in Spanish or in English.
- It is presented in its original form.
- It is presented double-sided, LuxCSD will not take any responsibility if the form is not double-sided and rejected by the depository.
Moreover, the Certificate of Residence may be required by certain issuers on a per-payment basis.
How many are provided? | One per beneficial owner. |
Who completes it? | Beneficial owner’s local tax authorities. |
How often is it provided? | Annually. |
When is it provided? | (Immediate refund) at least two business days before the respective payment, by 10:00 CET. (Quick refund) at the latest, on the last business day of the month in which the interest payment took place, by 10:00 CET. |
Copy or original? | Original required. |
Breakdown of Holdings/Disclosure
Disclosure of Spanish non-residents and Spanish residents via a formatted SWIFT MT565 or Xact Web Portal consisting in one breakdown per tax rate and residency status indicating:
- Customer account number;
- ISIN code;
- Corp ID;
- Total instructed securities quantity;
- Requested tax rate;
and for each non-Spanish BO following details in BENODET sequence: - Name of the entity (field :95V::OWND//);
- Two letter ISO country code of entity’s country of fiscal residence (field :94C:DOMI//);
- BO securities quantity (field :36B::OWND//);
- LuxCSD reference of the COR(field :70E::CETI//);
and/or for each Spanish BO following details in BENODET sequence: - Full name and address of Spanish entity (field :95V::OWND//);
- Spanish entity TIN (field :95S::ALTE//TXID/);
- Two letter ISO country code of entity’s country of fiscal residence (field :94C:DOMI//);
- BO securities quantity (field :36B::OWND//);
- If the Spanish entity is the final BO or an Intermediary (field :70E::CETI// with either Final BO or Intermediary as value).
How many are provided? | One per LuxCSD account. |
Who completes it? | Customer. |
How often is it provided? | Per interest paymen or quick refund application. |
When is it provided? | (Immediate refund) at least two business days before the respective payment, by 10:00 CET. (Quick refund) at the latest, on the last business day of the month in which the interest payment took place, by 10:00 CET. |
Copy or original? | SWIFT MT565 or Xact Web Portal |
3. Supranational organisations and central banks
Spanish Securities - Standing Instruction for International or Supranational Organisations and Central Banks
For the standing instruction, the customer is required to submit, once and before the first income payment, the Spanish Securities - Standing Instruction for International or Supranational Organisations and Central Banks certifying, among other things, that the customer holds the Spanish securities exclusively as proprietary assets.
In addition to this Standing Instruction certificate, the following documentation may be required as indicated:
- For supranational organisations that have signed a “Convenio Constitutivo” with Spain:
- A copy of the “Convenio Constitutivo” confirming tax-exempt status.
- For foreign central banks:
- A copy of the By-laws or any other official document proving your central bank status.
How many are provided? | One per beneficial owner. |
Who completes it? | Beneficial owner. |
How often is it provided? | Once. Valid until revoked. |
When is it provided? | By the immediate or quick refund deadline for the respective paying agent. |
Copy or original? | Original required. |