Investor Profile France Corporate 2017
Disclaimer The information provided in this publication is for general information purposes only and is valid as at January 1, 2017. 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 295018. 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
Contents Overview of RBC Investor & Treasury Services withholding tax policies 4 Markets 6 Additional comments: 14 ii INVESTOR PROFILE
This document provides an outline of the relevant withholding taxes applicable to corporates resident in France, in respect of securities income from portfolio investments. This Investor Profile is intended for use by French resident corporations.
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. Note that due to market conditions clients requiring relief at source or reclaim services on Italian securities (including Italian Government Bonds held in a depositary such as Euroclear) must provide the Bank with a further two Notarized Powers of Attorney. 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
Certification of Residency In order to obtain Double Taxation Treaty benefits in a number of foreign markets, the Australian Tax Office is required to issue certificates of residence or certify tax reclaim forms. In order to facilitate the issuance of certificates of residence and the certification of tax reclaim forms, for each Australian resident client the Bank will require the beneficial owner to provide to it a Tax Office Authority document. This document enables the Bank to liaise directly with the company s tax office in order to obtain appropriate Australian residence certifications for tax relief claims. Please note that without this document no tax service can be offered to clients. 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. 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.
Markets Country Dividends standard Dividends treaty Corporate bonds standard Government bonds standard Interest treaty Notes Australia (Relief at Source) 0/30 30% rate for unfranked dividends, 0% rate for fully franked dividends 15 0/10 0/10 10 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 (Reclaim Belgium (Reclaim 27.5 15 (12.5) 0 0 0 Documentation required 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) 15 (15) 0/30 0 15 Documentation required client and process/ action to be: Tax reclaim application Sent to client s tax office for certification of residency. Submitted to agent bank in Austria client and process/ action to be: Tax reclaim application Sent to client s tax office for certification of residency Submitted to agent bank in Belgium
Canada 1 25 15 0* *There is no withholding tax deducted on interest income earned by nonresidents effective 01.01.08 0 0*/10 *Where the Documentation required NR301 is required for non-canadian standard rate residents except Client Pools. For is lower than Non-Canadian Client Pools a Form A the treaty rate, the is required and these documents standard rate applies are required to enable them to receive the treaty rates. client and process/ action to be: None required Chile 35 15 4/35 4/35 15 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. China 0/10 10 10 10 10 Dividends: Chinese H and B shares are subject to WHT at 10% Cyprus 0 15 0 0 10 Denmark (Non-Treaty Finland 1 (Relief at Source/ Reclaim Territory ) 27 n/a 0 0 n/a There is a possibility that a reduction is available through domestic exemption. Approval will be required from Danish tax authorities 30/20* *20% rate applies to non-resident corporations 0 (30) 0 0 0/10 Documentation required Relief at Source: Beneficial owner details (one off requirement per Tax Questionnaire, information update required should details change) Reclaim: client and process/ action to be: Relief at Source: Beneficial owner breakdown to be provided prior to each dividend payment Reclaim: Tax reclaim application Sent to client s tax office for certification of residency Submitted to agent bank in Finland
Germany (Reclaim 26.375 15 (11.375) 0 0 0 Documentation required Tax reclaim application including shareholder percentage information sent to client s tax office for certification of residency Submitted to agent bank in Germany Greece 15 15 0 0 0/10 Hong Kong 0 0/10 0 0 0/10 Hungary 0 15 0 0 0 Ireland (Domestic Exemption at Source/ Reclaim 20 0* *Under the DWT scheme residents of treaty countries are entitled to full exemption on dividend withholding tax 20 0 0 Documentation required to enable RBC Investor & Treasury Services to complete the required forms (one off requirement per Tax Questionnaire, renewable should details change) 2. Tax Office details and reference number (one off requirement per Tax Questionnaire, information update required should details change) 3. Tax Office Authority to enable RBC Investor & Treasury Services to request certifications of residency Clients are initially assigned to a general account to which the maximum withholding tax rate is assigned Once the Certificate of residency has been received, and if there is a Power of Attorney in place, RBC Investor & Treasury Services will complete a DWT form on behalf of the client and re-assign the account to the exempt location If tax has been deducted during the time that the client was assigned to the taxable account then a retroactive reclaim is possible to obtain the difference between the maximum tax deducted and the treaty rate
Israel 1 (Relief at Source/Reclaim 25 15 (10) 0/15/25 0/15/25 10 Documentation required Relief at source and reclaims: Relief at source and reclaims: A114 form Certificate of residence Italy 1 26 1.2 Applicable to qualifying EU or EEA resident entities effective 01.01.09 0*/26 *0% rate if client provides a selfcertification 0*/12.5 *0% rate if client provides a selfcertification 0/10 Documentation required 1. Notarized Power of attorney ( 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 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. Client s Self Certification 4. Tax Office Authority to enable RBC Investor & Treasury Services to request residency Once the required information / documentation have been provided by the client RBC Investor & Treasury Services will complete an annual certificate on 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 Japan 15.315 10 0*/15.315 *0 % rate applies to certain bonds held on the Bank of Japan s book entry system 0*/15.315 *0% rate applies to government bonds if held on the Bank of Japan's book entry system 10 Documentation required 2. Full beneficiary details provided Application Form for Tax Exemption Luxembourg 15 15 0 0 0/10 Mexico 10 0 4.9/10/30 0 15 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 15 0 0 0/10 New Zealand1 Norway 1 Territory / Reclaim 15*/30 *15% applies to dividends fully imputed 25 0 (25)*/15 *The Tax Exemption Model provides a WHT exemption for corporate shareholders resident in the EU/EEA effective retroactively from 01.01.04 15 2*/15 *2% rate applies where Approved Issuer Levy has been applied for 0/2/15 0/2/10 0 0 0 Documentation required *For The Exemption Model only: 1. Tax Office details and reference number (one off requirement per Tax Questionnaire, information update required should details change) 3. Beneficial owner questionnaire *For The Exemption Model only: First-time reclaim application with accompanying Norwegian Attestation and Certificate of Residency. Thereafter it should be possible to assign the investor to a segregated account and apply exemption at source on provision of an annual attestation. Peru (Non-Treaty 5 n/a 4.99 0 n/a Philippines 30 15 30 20/30 15 Dividends: Due to the restrictive and unworkable time frames introduced in the market, reduction at source is currently unavailable Poland 1 19 15 20 20 0 Documentation required Certificate of residency Portugal 2 (Reclaim 25 15 (10) 0*/25/35** *0% rate applies to most corporate bonds 0/25/35* *35% rate applies where beneficial ownership is not disclosed 12 Documentation required Tax reclaim application
** 35% rate applies where beneficial ownership is not disclosed Sent to client s tax office for certification of residency Submitted to agent bank in Portugal Income breakdowns Russia 15 15 20/30 0 0 Interest: 15% rate applies to certain types of state and municipal securities Singapore 0 15 15 15 10 Slovakia 0 10 0 0 0 South Africa 1 (Relief at Source/Reclaim 20 15 0 0 0 South Korea 22 15 15.4 15.4 10 Documentation required 2. 72-2 form 3. Full beneficiary details provided in completed Tax Questionnaire Submit the Tax Forms periodically to agent bank in South Korea Spain (Reclaim Sweden 1 (Relief at 19 15 (4) 0*/19 *A domestic exemption is available on interest from qualifying corporate bonds 0*/19 *0% rate applies to certain Government Treasury stock. 0 Documentation required Interest paid to an EU resident without a permanent establishmen t in Spain is exempt on provision of a certificate of residence 30 15 (15) 0 0 0 Documentation required Quick Refund Procedure: Certification of Tax residency requested s tax office annually Income breakdowns Standard Reclaim Procedure: Certified Tax Reclaim form Income breakdowns
Source/ Reclaim Relief at Source & Reclaim: Relief at Source: Beneficial owner breakdown to be provided prior to each dividend payment Switzerland (Reclaim 35 15 (20) 35 35 0 Documentation required 4. Shareholder percentage questionnaire for mutual fund corporates Reclaim: Tax reclaim application Sent to client s tax office for certification of residency Submitted to agent bank in Sweden Tax reclaim application incorporating shareholder percentage information Sent to client s tax office for certification of residency Submitted to Swiss Tax Authorities annually Taiwan 20 10 15 15 10 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 20 0 0 15 Dividends: Most foreign institutional investors have been granted nonresident investment fund status (NRIF) and are eligible for gross payments 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. 0% rate under treaty applies to interest derived by Government.
UK 0 15 0*/20 *0% rate applies to interest from 0 0 Documentation required None required None required publicly quoted securities US 30 15 0*/30 *0% rate applies to portfolio debt securities and government interest 0*/30 *0% rate applies to portfolio debt securities and government interest 0 Documentation required W8-BENE Form (renewable should details change, per Tax Questionnaire) 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 1 Generally speaking, where possible, RBC Investor & Treasury Services will take the necessary action in order to obtain upfront relief at source on income. These territories have a mixture of reclaim and relief at source opportunities. In addition where a timing issue necessitates full withholding on income, retroactive reclaims will be processed in the above territories. 2 Relief at source in respect of Portuguese income is possible in theory but is currently not achievable in practice. This is due to a market issue that RBC Investor & Treasury Services will continue to monitor.
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.