Form descriptions - Relief at source - Italian debt securities
Information is provided here about the forms and their use in relation to the procedure for relief at source of withholding tax on income from Italian debt securities, as follows:
General rules:
- Electronic signatures are not accepted. Any tax relief form that does not bear an original signature is considered by the Italian Tax Authorities to be a copy and is consequently rejected.
- If the beneficial owner is a company (legal entity), each Power of Attorney and Letter of Indemnity should be printed under the company’s letterhead.
Documentation:
- Master Instruction;
- Self Certification;
- Self Certification for central banks and supranational organisations.
- Side Declaration (for institutional investors).
- Documentary evidence that the beneficial owner is effectively a central bank (for example, a copy of statutes)
- Letter of Indemnity from an Italian Beneficial Owner - Italian Bonds
- Letter of Indemnity from an Italian Customer - Italian Bonds
- Letter of Indemnity from an Italian Bank – Italian Bonds
- Letter of Indemnity from an Italian Fiduciary Company– Italian Bonds
Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Italian debt securities.
Master Instruction
One-time certification that provides certain statements regarding the beneficial owner(s) of the securities. The customer certifies, among other information, that the debt securities held in the account specified and subject to the withholding tax regime are held exclusively for exempt beneficial owners whose names and Tax Identification Numbers are listed in Section II and with respect to whom the customer has provided the requested valid documentation of residence. It is valid until revoked. If any change occur that render any of the details in the Master Instruction untrue, a new Master Instruction must be forwarded to LuxCSD and/or the existing one must be revoked.
Before adding to an exempt omnibus account debt securities of an exempt beneficial owner that is not identified in the existing Master Instruction relating to the account concerned, the customer must provide LuxCSD with a new Master Instruction that includes the additional beneficial owner in addition to the Self Certification (or other documentation of exemption, if appropriate) relating to that additional beneficial owner.
Note: The European Central Bank (ECB), a central bank member of the European System of Central Banks (ESCB) or other central bank must, in addition to the Master Instruction, attach documentary evidence that they are effectively the central bank of a given country (for example, copy of statutes).
How many are provided? | One per LuxCSD exempt account. |
Who completes it? | Customer. |
How often is it provided? | Once. Valid until revoked. |
When does it take effect? | On the date of receipt by LuxCSD |
When is it provided? | Before changing the account tax status from taxable to exempt; and upon changes to the list of beneficial owners. |
Copy or original? | Original required. |
Can it be duplicated? | Yes, only MI omnibus (box 3). MI for single BO (box 1 and 2) must be provided in original |
Self Certification
A Self Certification must be completed by the beneficial owner and the customer of LuxCSD in order to benefit of an exemption at source of withholding tax from debt securities subject to Legislative Decree 239/1996.
Details on how to complete this certificate can be found in the attachment below (called Explanatory Notes) of the Italian Ministry of Economy and Finance's guidelines.
The Self Certification currently in force is to be used. However, it is no longer mandatory to tick one of the boxes under No. 2 on the first page of the certificate (concerning Art. 76, C.7-bis of the Italian Consolidated Tax Act, approved with Presidential Decree 917/1986).
How many are provided? | One per beneficial owner. |
Who completes it? | Beneficial owner and LuxCSD customer. |
How often is it provided? | Once. Valid until revoked. |
When does it take effect? | On the date of receipt by LuxCSD |
When is it provided? | Before applying for the exemption. |
Copy or original? | Original required. |
Can it be duplicated? | Yes, only for already exempt account or if MI is provided/duplicated when applicable. |
Self Certification for central banks and supranational organisations.
A Self Certification for central banks and supranational organisations must be completed by the beneficial owner and the customer of LuxCSD in order to benefit of an exemption at source of withholding tax from debt securities subject to Legislative Decree 239/1996.
How many are provided? | One per beneficial owner. |
Who completes it? | Beneficial owner and LuxCSD customer. |
How often is it provided? | Once. Valid until revoked. |
When is it provided? | Before applying for the exemption. |
When does it take effect? | On the date of receipt by LuxCSD |
Copy or original? | Original required. |
Can be duplicated? | Yes, only for already exempt account or if MI is provided/duplicated when applicable |
Documentary evidence
Any document allowing the ITA to verify that the beneficial owner is effectively a central bank (for example, a copy of statutes).
How many are provided? | One per beneficial owner. |
Who completes it? | n/a |
How often is it provided? | Once. Valid until revoked. |
When is it provided? | Before applying for the exemption. |
When does it take effect? | On the date of receipt by LuxCSD |
Copy or original? | Original required. |
Can be duplicated? | Yes, only together with duplication of self certification |
Side Declaration
A Side Declaration confirms that the beneficial owner is an institutional investor, and is:
- incorporated and resident in States or territories with which Italy has an adequate exchange of information, and
- subject to the surveillance of a supervisory authority in its own country of residence, or
- is not subject to the surveillance of a supervisory authority in its own country of residence but is, however, entitled to enjoy an exemption as per Circular 200/2003.
It must be signed by the legal or voluntary representative that is already detailed in fields from 14 to 24 of the self-certification.
How many are provided? | One per beneficial owner. |
Who completes it? | Beneficial owner or its managing company if any. |
How often is it provided? | Once. Valid until revoked. |
When does it take effect? | On the date of receipt by LuxCSD |
When is it provided? | Before applying for the exemption. |
Copy or original? | Original required. |
Can it be duplicated? | Yes, only together with duplication of self-certification |
Letter of Indemnity from an Italian Customer - Italian Bonds
In order to obtain an exemption at source of withholding tax, a Letter of Indemnity must be provided in which the LuxCSDcustomer, being an Italian resident corporation, certifies whether it holds the securities as an intermediary, second level bank or beneficial owner.
How many are provided? | One per LuxCSD account. |
Who completes it? | Customer. |
How often is it provided? | Once. Valid until revoked. |
When does it take effect? | On the date of receipt by LuxCSD |
When is it provided? | Before applying for the exemption. |
Copy or original? | Original required. |
Can it be duplicated? | Yes |
Letter of Indemnity from an Italian Beneficial Owner - Italian Bonds
In order to obtain an exemption at source of withholding tax, a Letter of Indemnity must be provided in which the beneficial owner of the securities, being an Italian resident corporation, certifies his beneficial ownership.
How many are provided? | One per beneficial owner. |
Who completes it? | Beneficial owner. |
How often is it provided? | Once. Valid until revoked. |
When does it take effect? | On the date of receipt by LuxCSD |
When is it provided? | Before applying for the exemption. |
Copy or original? | Original required. |
Can be duplicated? | Yes |
Letter of Indemnity from an Italian Bank – Italian Bonds
In order to obtain an exemption at source of withholding tax, a Letter of Indemnity must be provided in which the beneficial owner of the securities, being an Italian resident bank and the direct customer of CBL non-Italian customer, certifies whether it holds the securities as an intermediary, second level bank or beneficial owner.
In this situation, it is mandatory to segregate the position of the Italian bank and to reflect the name of the Italian bank next to the name of the customer in the CBL account denomination.
The direct customer of CBL must also provide a Letter of Indemnity from an Italian Customer - Italian Bonds
How many are provided? | One per beneficial owner. |
Who completes it? | beneficial owner |
How often is it provided? | Once. Valid until revoked. |
When does it take effect | On the date of receipt by LuxCSD |
When is it provided? | Before applying for the exemption. |
Copy or original? | Original required. |
Can be duplicated? | No |
Letter of Indemnity from an Italian Fiduciary Company– Italian Bonds
In order to obtain an exemption at source of withholding tax, a Letter of Indemnity must be provided in which the beneficial owner of the securities, being an Italian resident fiduciary company and the direct customer of CBL non-Italian customer, certifies whether it holds the securities as an intermediary, second level bank or beneficial owner.
In this situation, it is mandatory to segregate the position of the Italian fiduciary company and to reflect the name of the Italian fiduciary next to the name of the customer in the CBL account denomination.
The direct customer of CBL must also provide a Letter of Indemnity from an Italian Customer - Italian Bonds
How many are provided? | One per beneficial owner. |
Who completes it? | Beneficial owner |
How often is it provided? | Once. Valid until revoked. |
When does it take effect | On the date of receipt by LuxCSD |
When is it provided? | Before applying for the exemption. |
Copy or original? | Original required. |
Can be duplicated? | No |