Form descriptions - Relief at source - Italian equities
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 equities.
The documentation requirements are the same for all types of beneficial owner, as follows:
- One-Time Certificate for Italian Equities;
- One-Time Master Instruction/Dividends at Source (O.T.M.I.);
- Certificate of Residence;
- Italian Equities: List of Beneficial Owners.
- Self-certification (for EU/EEA collective investment vehicles)
- Copies of documentation evidencing the identity of the representative or management company
Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Italian equities.
One-Time Certificate for Italian Equities
This form is a certification that provides certain statements regarding the beneficial owner of the securities and must be completed for each account in which Italian equities are held on behalf of beneficial owners for whom a reduced withholding tax rate can be applied.
The customer certifies, among other things, whether he is holding the Italian equities on behalf of a single beneficial owner (box 1) or on behalf of more than one beneficial owner, including the customer, if applicable (box 2).
The One-Time Certificate is valid until revoked. Changes to any of its details must be communicated to LuxCSD without delay in a new certificate.
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? | At the latest, on ex-date of the first dividend payment by 10:00 CET. |
Copy or original? | Original required. |
Can it be duplicated? | Only valid with O.T.M.I. and COR. Can be duplicated only if O.T.M.I. and COR requested together. |
One-Time Master Instruction/Dividends at Source (O.T.M.I.)
An O.T.M.I. must be completed and signed by the beneficial owner for which relief at source is requested and addressed to LuxCSD in its role of withholding agent. By doing so, the eligible beneficial owner demands, among other things, that the applicable reduced tax rate be applied.
The O.T.M.I. includes the different possibilities of tax relief. According to the eligibility of the beneficial owner, one box only must be ticked; O.T.M.I.s on which more than one box is ticked will be considered as not applicable.
Important note:
The Tax Identification Number (TIN) of the beneficial owner(s), legal representative (if applicable), co-owner(s) etc. is mandatory. The O.T.M.I. can be accepted without a TIN only if the respective entity has no TIN allocated due to its status (for example, a central bank, supranational organisation etc.).
In such cases, LuxCSD must receive a request, via SWIFT or CreationOnline, to issue a TIN. The O.T.M.I. is valid until revoked but any change regarding the mandatory information of the beneficial owner or of the legal representative (such as name, tax status, address, TIN) must be communicated by the customer to LuxCSD without delay in a new certificate.
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? | At the latest, on ex-date of the first dividend payment by 10:00 CET. |
Copy or original? | Original required. |
Can it be duplicated? | Only valid with OTC and COR. Cannot be duplicated if OTC and COR not in place or if not requested together. |
A version of the O.T.M.I. form, with some explanatory notes on how to complete it, is provided, for information purposes only, as an attachment to this page.
Certificate of Residence
Note: Beneficial owners that are supranational organisations recognised by Italian law are not required to submit a Certificate of Residence to obtain tax exemption on dividend payments.
A Certificate of Residence issued by the beneficial owner’s local tax authorities will be accepted, provided that the following conditions are met:
1. It certifies the following:
- The beneficial owner’s full name, address and Tax Identification Number (TIN).
Certificates of Residence are accepted without a Tax Identification Number only if the beneficial owner has no TIN allocated by its local tax authority due to its status (for example, a central bank). - That the beneficial owner is subject to direct taxation in its country of residence.
- That the beneficial owner is resident in accordance with Article 4 of the DTT between its country of residence and Italy.
- (In order to obtain the 1.2% or 11% reduced tax rates) that the beneficial owner is subject to corporate tax in its country of residence or is established as a pension fund in its country of residence (which must be an EU/EEA Member State).
2. It is signed and stamped by the respective beneficial owner’s local tax authority on or after 1 January of the respective year.
A Certificate of Residence is valid for the calendar year in which it is issued and until 31 March of the following calendar year. A renewed Certificate of Residence must be sent to LuxCSD together with an accompanying letter, mentioning, as mandatory details, the customer account number and the TIN of each beneficial owner, which must be identical to the TIN included in the O.T.M.I. already provided by the respective beneficial owner.
Important note:
For Spanish and Portuguese beneficial owners applying for the treaty tax rate, an electronic Certificate of Residence, issued by the tax authorities of Spain and Portugal is considered as legally acceptable for the purposes of obtaining the respective treaty rate, provided that it is submitted as a complement to the appropriate tax relief form, duly completed and certified in all sections (apart from the section reserved for the local tax authority) and that it meets the following criteria:
- It is provided to LuxCSD in printed paper copy in due time; and
- It is issued under the double taxation treaty in force; and
- It includes the validation code necessary for the authentification process; and
- It is confirmed as authentic on the website of the respective local tax authority.
How many are provided? | One per beneficial owner. |
Who completes it? | Beneficial owner's tax authority. |
How often is it provided? | Annually. Valid the calendar year in which it is issued and until 31 March of the following calendar year. |
When is it provided? | At the latest, on ex-date of the first dividend payment by 10:00 CET. |
Copy or original? | Original required. |
Can it be duplicated? | Only valid with OTC and O.T.M.I . Cannot be duplicated if OTC and O.T.M.I. not in place or if not requested together. |
Italian Equities: List of Beneficial Owners
Customers that hold equities in their account on behalf of more than one beneficial owner - including themselves, if applicable - (that is, customers that have checked box 2 of the “One-Time Certificate for Italian Equities”), are required to provide an “Italian Equities: List of Beneficial Owners”.
The declaration provides a list of all the beneficial owners whose Italian equities are held in the given customer account, their respective holdings and the withholding tax rate (reduced or not) applicable to the dividend payment made to them.
The “Italian Equities: List of Beneficial Owners” must be received by LuxCSD via the Upload BO List application or via SWIFT or CreationOnline, before each dividend payment date.
How many are provided? | One per LuxCSD account. |
Who completes it? | Customer. |
How often is it provided? | Per dividend payment. |
When is it provided? | At the latest, on ex-date of the first dividend payment by 10:00 CET. |
Copy or original? | Upload via LuxCSD's Online Upload facility, using the template provided. |
Self-certification (for EU/EEA collective investment vehicles)
A self-certification issued by the foreign CIV is required declaring that it is eligible for the exemption. The self-certification is signed by the legal representative (or the representative agent) of the foreign CIV or of the management company. It does not need to be certified by the beneficial owner’s tax authorities or with a separate certificate of residence (COR).
How many are provided? | One per foreign CIV. |
Who completes it? | The legal representative of the foreign CIV |
How often is it provided? | Once. Valid until revoked |
When is it provided? | At the latest, on ex-date of the first dividend payment by 10:00 CET. |
Copy or original? | Original required |
Can it be duplicated? | Yes, Only valid with OTC and O.T.M.I . Cannot be duplicated if OTC and O.T.M.I. not in place or if not requested together |
Copies of documentation evidencing the identity of the representative or management company
The documents are as following:
- CIVs whose investments are managed by a management company, a copy of a deed providing the following information:
- Identification of the management company (company name, address, etc.);
- Details of the legal representative of the previously mentioned company;
- CIVs with a representative body, either incorporated (for example, SICAVs) or not incorporated, a copy of the deed providing the identification data of either the legal representative (or the representative agent).
How many are provided? | One per foreign CIV |
Who completes it? | The legal representative of the foreign CIV |
How often is it provided? | Once. Valid until revoked |
When is it provided? | At the latest, on ex-date of the first dividend payment by 10:00 CET. |
Copy or original? | Copy required |
Can it be duplicated? | Yes, together with the self certification for EU/EEA investment funds |