Investor Profile. France FCP

Transcription

1 Investor Profile France FCP 2017

2 Disclaimer The information provided in this publication is for general information purposes only and is valid as at January 1, Any changes to legislation or treaties will be published via the RBC Investor & Treasury Services Tax Newsflash procedure and subsequent editions of this publication will be updated accordingly. The information in this publication should not be regarded as advice. RBC Investor & Treasury Services are not responsible for the accuracy of the information, nor for any actions taken based on the information. We strongly recommend consultation with appropriate tax advisors. RBC Investor & Treasury Services is a global brand name and is part of Royal Bank of Canada. RBC Investor & Treasury Services is a specialist provider of asset servicing, custody, payments and treasury services for financial and other institutional investors worldwide. RBC Investor Services operates through two primary operating companies, RBC Investor Services Trust and RBC Investor Services Bank S.A., and their branches and affiliates. In the UK, RBC Investor Services Trust operates through a branch authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The Dubai Branch of RBC Investor Services Trust is regulated by the Dubai Financial Services Authority. In Australia, RBC Investor Services Trust is authorized to carry on financial services business by the Australian Securities and Investments Commission under the AFSL (Australian Financial Services Licence) number In Singapore, RBC Investor Services Trust Singapore Limited (RISTS) is licensed by the Monetary Authority of Singapore (MAS) as a Licensed Trust Company under the Trust Companies Act and was approved by the MAS to act as a trustee of collective investment schemes authorized under S 286 of the Securities and Futures Act (SFA). RISTS is also a Capital Markets Services Licence Holder issued by the MAS under the SFA in connection with its activities of acting as a custodian. In Hong Kong, RBC Investor Services Bank S.A. is a restricted license bank and is authorized to carry on certain banking business in Hong Kong by the Hong Kong Monetary Authority. RBC Investor Services Trust Hong Kong Limited is regulated by the Mandatory Provident Fund Schemes Authority as an approved trustee. / Trademarks of Royal Bank of Canada. Used under licence. i INVESTOR PROFILE

3 Contents Overview of RBC Investor & Treasury Services withholding tax policies 4 Markets 7 Additional comments: 12 ii INVESTOR PROFILE

4 This document provides an outline of the relevant withholding taxes applicable to a French FCP, in respect of securities income from portfolio investments. This Investor Profile is intended for use by collective investment vehicles organized in the form of a FCP pursuant to French law.

5 Overview of RBC Investor & Treasury Services withholding tax policies 1. ACCOUNT OPENING / NEW PORTFOLIO INVESTMENT Information / documentation required from the client When a client opens a Global Custody account for the first time, the appropriate Tax Questionnaire and relevant documents including self -certification form for regulatory reporting purposes, as provided in the account opening package must be completed providing full details of the beneficial owner of any income received for the account. Where a Tax Questionnaire is not completed the Bank will not supply any tax services for that account and full withholding tax rates will be applied. When a client initially opens a global custody account a detailed list of investment markets is requested. This list provides the necessary information for the Bank to complete tax documentation or request additional client documentation to ensure the appropriate tax rate is obtained in each market. If, at a later date, the client s investment strategy requires the opening of a global custody account in a new market, current procedures provides for a weekly report to be produced detailing the new market. At this stage the bank will, as part of its client monitoring service, complete or request any necessary tax documentation. If no such advice or requested documentation is received the Bank will not accept any liability for any tax losses incurred. Furthermore, it is the responsibility of the client to advise the Bank of any changes that may lead to a reclassification of client type for the beneficial owner of the account or other details relating to their tax status, such as a change in Local Tax Office or Tax Identification Number. Any changes must be advised to the Bank within 10 business days. (Please refer to the Taxation SLS for full details of clients responsibilities and the service that can be expected from RBC Investor & Treasury Services). General Requirements Power of Attorney As a part of the account opening package (Tax Questionnaire) the Bank requires the completion of a Power of Attorney from the beneficial owner (or where appropriate the Trustees of a fund). This POA enables the Bank to complete many of the required documents in-house without further recourse to the client. Market specific requirements are detailed below and markets where the Bank can complete documentation on behalf of the beneficial owner where a POA is held are clearly marked.. Certain markets or scenarios exist where it is not possible for the Bank to complete the required documentation on behalf of the beneficial owner, even under POA, and in these cases it will be the client s responsibility to provide the necessary documents on request. The most important of these markets is the US where completion of a W-8 series form is a necessity. In addition, in certain cases a client may not wish to provide RBC Investor & Treasury Services with a Power of Attorney. In such cases it may be arranged for clients to complete any additional specific documentation required themselves. rbcits.com

6 Certification of Residency A FCP is a co-ownership entity without legal personality and can not itself benefit from Double Taxation Treaties. Due to the fiscal transparency principle, the unit holders in the FCP may be entitled to obtain double taxation treaty benefits as long as they are considered to be French resident. Country Specific Requirements US Form W8-BEN/E This document alleviates the charge to US backup tax on US source income payments and gross sale proceeds received by RBC Investor & Treasury Services across all countries of investment. For corporates invested in US bonds, it also enables "portfolio interest" to be paid without deduction of US Non Resident Withholding Tax. Collective Investment Vehicle Shareholder Percentage Questionnaire This requirement pertains to collective investment vehicles investing in Austria, Germany and / or Switzerland only. Details as at the end of the previous tax year are to be provided for new accounts and on an annual basis thereafter. Please refer to the guidelines / explanatory notes provided below for further information: Austria A new rule was implemented at the end of December 2008 whereby each tax reclaim filed in Austria by a Non-Austrian resident Investment Vehicle must include an Attestation of Holding providing shareholder percentage information. Additional disclosure of investors holding 10 % or more in the Investment Vehicle is required in the form of an original Certificate of Residence. This rule is effective retroactively to January 1, Germany A requirement in the form of a statement of beneficial ownership was introduced in 2000, which provides the German Tax Authority with the percentage of shareholders or unit holders that are resident in the country where the fund is resident. If, for example, a fund provides a statement of beneficial ownership or an attestation stating that 98% of its shareholders are residents of the country where the fund is resident, only 98% of the tax reclaim will be paid. If the percentage of ownership is 98.01%, the percentage refund would be rounded up to the next highest whole number (i.e., 99%). NB: If the mutual fund is itself a corporation or is treated as a corporation for tax purposes, the mutual fund may claim treaty benefits without providing this additional information.

7 Switzerland The percentage shareholding for the underlying holders comprising a mutual or investment fund is required on an annual basis and should be taken at the end of the fund s accounting year. Claims for refund are generally based on the proportion of shares beneficially owned by shareholders resident in the country of domicile of the fund. Client Service Managers will provide clients with the required documentation at the time of account opening or investment in a new market, and periodically when renewals are required. 2. CROSS BORDER CUSTODY AND SETTLEMENT TAX RECLAIMS Restrictions are placed on providing a withholding tax reclaim or relief at source service on cross border holdings. A cross border security is any security settled and held by an agent in a country not being the home country of location of that security. Due to inherent risks such as an inability to process cross border reclaims by the sub agent holding the security and substantial agent fees where cross border reclaims are available. This policy is extended to equity investments held through Euroclear but excludes ADR s. 3. GLOBAL MINIMUM TAX RECLAIM THRESHOLD A minimum reclaim value is set for all withholding tax reclaim territories. All reclaims with a value falling under the minimum threshold for that market will not be processed by RBC Investor & Treasury Services. Such claims will be deleted from any accruals reported to clients. This is due to the fact that it is uneconomic, based on agent charges and internal processing costs for RBC Investor & Treasury Services to process reclaims under a certain value.

8 Markets Country Dividends standard Dividends treaty Corporate bonds standard Government bonds standard Interest treaty Notes Australia 0/30 30% rate for unfranked dividends, 0% rate for fully franked dividends n/a 0/10 0/10 n/a Interest: Interest payments are in general rule subject to 10% withholding tax but no withholding tax will be applied on the following debt: - debt compliant with the Section 128F of the Australian Income Tax Assessment Act 1936, - Australian Commonwealth Treasury Notes (since December 4, 2009) - Global bonds denominated in AUD ( Matildas ) Austria 27.5 n/a 0 0 n/a As a general rule, foreign Collective Investment Vehicles are not considered as resident for treaty purposes. There is a possibility that a reclaim of Austrian withholding tax by foreign investment fund may be possible in certain circumstances. Approval will be required from the Austrian tax authorities. Belgium 15*/30 *15% rate applies to certain shares issued on or after 1 January, 1994 and shares of investment companies (SICAV's, SICAF's and OPCC's) n/a 0/27 0 n/a Interest- Most interest payments are exempt from withholding tax Canada 25 n/a 0 0 n/a Interest Withholding tax of 25% applies to interest income when Canadian domestic law tax exemption does not apply. Chile 35 n/a 4/35 4/35 n/a Dividends: The statutory withholding tax rate on dividends is 35%, less a tax credit which varies according to the rate of corporate tax paid by the issuing company. Although relief may be available under treaty in theory, this is not obtained in practice.

9 China 0/10 n/a n/a Dividends: Chinese H and B shares are subject to WHT at 10% Cyprus Denmark 27 n/a 0 0 n/a There is the possibility that a reduction is available through domestic exemption. Approval will be required from Danish tax authorities Finland 30 n/a 0 0 n/a French FCP and FCC funds are not generally considered as eligible for treaty benefits. Germany n/a 0 0 n/a In principle there is no eligibility to access the treaty for an organization which is not a legal entity or treated as a legal entitiy for tax purposes. The treaty with France has a special provision for investment funds which grants French funds access to the treaty rates in relation to the amount of holdings of resident investors. Greece 0/15 n/a 0 0 n/a Dividends: The rate is 0% if the FCP qualifies for the UCITS status. Hong Kong 0 n/a 0 0 n/a Hungary 0 n/a 0/30 0 n/a Ireland (Domestic Exemption at Source/ Reclaim Territory) 20 n/a 0/20 0 n/a There is a possibility that French FCP s can avail of the benefits of the Double Taxation Treaty with regard to Irish source dividend income by completing all the relevant forms and getting certification by the tax authorities in France. Israel 25 n/a 0/15/25 0/15/25 n/a Italy (Relief at Source Territory) 26 n/a 0/26 0% rate if client provides a self certification 0/12.5 0% rate if client provides a self certification n/a Documentation required from client 1. Notarized Power of attorney (2 if assets are going to be held domestically and at Euroclear) to enable RBC Investor & Treasury Services to complete the required forms (one off requirement per Tax Forms that RBC Investor & Treasury Services may complete on behalf of client and process/action to be: Once the required information / documentation have been provided by the client RBC Investor & Treasury Services will complete an annual certificate on

10 Questionnaire, renewable should details change) 2. Tax Office details and reference number (one off requirement per Tax Questionnaire, information update required if details change). 3. Tax Office Authority to enable RBC Investor & Treasury Services to request residency (Details provided in the Tax Questionnaire) 4. Client s self-certification the client s behalf to secure treaty relief at source in respect of equities. After having received the required information / documentation from the client RBC Investor & Treasury Services will complete a one off declaration (renewable should any details change) on the client s behalf to secure exemption at source in respect of interest income Periodical reporting of client s TIN per trade description Japan (Relief at Source Territory) n/a 0*/ *0 % rate applies to certain bonds held on the Bank of Japan s book entry system 0*/ *0% rate applies to government bonds if held on the Bank of Japan's book entry system n/a Documentation required from client 1. Power of attorney 2. Full beneficiary details provided in completed Tax Questionnaire Forms that RBC Investor & Treasury Services may complete on behalf of client and process/action to be: Application Form for Tax Exemption Luxembourg 15 n/a 0 0 n/a Mexico 10 n/a 4.9/10/30 0 n/a Interest: 10% paid on negotiable instruments, 4.9% on interest paid to banks, 30% rate applies to residents of the black list countries Netherlands 15 n/a 0 0 n/a New Zealand 15*/30 *15% applies to dividends fully imputed n/a 2*/15 *2% rate applies where Approved Issuer Levy has been applied for 0/2/15 n/a Norway 25 n/a 0 0 n/a Peru 5 n/a 30 0/30 n/a

11 Philippines 30 n/a 30 20/30 n/a Dividends: Due to the restrictive and unworkable time frames introduced in the market, reduction at source is currently unavailable Poland 19 n/a n/a Portugal 25/35 n/a 0*/25/35** *0% rate applies to most corporate bonds ** 35% rate applies where beneficial ownership is not disclosed 0/25/35* *35% rate applies where beneficial ownership is not disclosed n/a Documentation required from client 1.Power of attorney 2. Tax Office Authority 3. Full beneficiary details provided in completed Tax Questionnaire Forms that RBC Investor & Treasury Services may complete on behalf of client and process/action to be: Tax relief process Income breakdowns Russia 15 n/a 20/30 0 n/a Interest: 15% rate applies to certain types of state and municipal securities Singapore 0 n/a n/a Slovakia 0 n/a 0 0 n/a South Africa 15 n/a 0 0 n/a. South Korea 22 n/a n/a Spain 19 n/a The applicability of treaty rates for foreign Collective Investment Vehicles is unclear and requires analysis to be made on a case by case basis 0*/19 *A domestic exemption is available on interest from qualifying corporate bonds 0*/19 *0% rate applies to certain Government Treasury stock. n/a Documentation required from client 1. Power of attorney 2. Tax Office Authority 3. Full beneficiary details provided in completed Tax Questionnaire Forms that RBC Investor & Treasury Services may complete on behalf of client and process/action to be: Quick Refund Procedure: Certification of Tax residency requested from client s tax office annually Income breakdowns Standard Reclaim Procedure: Certified Tax Reclaim form Income breakdowns

12 Sweden 30 n/a 0 0 n/a Switzerland 35 n/a n/a Taiwan 20 n/a n/a Dividends: 30% = payment to non-resident individuals, 25% = payments to non-resident corporations, 20% = payments on investments approved by the ROC government pursuant to the Statute for Investment by Foreign Nationals or the Statute for Investment by Overseas Chinese Interest: 15% = short term bills, Government/Corporate bonds/ Financial Debentures, Securitization Products e.g. ABS, REITs and RAETs, and repos on all of these. 20% applies to other forms of interest. Turkey 15 n/a 0 0 n/a Dividends: Most foreign institutional investors have been granted non-resident investment fund status (NRIF) and are eligible for gross payments UK 0 n/a 0/20 *0% rate applies to interest from publicly quoted securities US 30 n/a 0*/30 *0% rate applies to portfolio debt securities and government interest 0 n/a Documentation required from client None required 0*/30 *0% rate applies to portfolio debt securities and government interest n/a Interest: 0% rate applies to Government securities. However the Earthquake Tax Scheme effective 1 January 2000 applies a surcharge of between 4% and 19% depending on maturity. Documentation required from client W8-BENE Form (renewable should details change, per Tax Questionnaire) Forms that RBC Investor & Treasury Services may complete on behalf of client and process/action to be: None required Forms that RBC Investor & Treasury Services may complete on behalf of client and process/action to be: It is not possible for RBC Investor & Treasury Services to complete this document on behalf of the beneficial owner Once the appropriate W8-BENE form has been received and validated, the client will receive all income going forward with the correct rate of withholding tax applied

13 Additional comments: Relief at Source Territories (Or unspecified territories) - Please note that where standard withholding tax rates are lower than the specified treaty rate that the standard rate will apply. Reclaim Territories - Statutes and refund timeframes: Statutes & Refund Timeframes Tax rates for other markets in which investment is possible through RBC Investor & Treasury Services are available on request.