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In order to be able to avail of the tax benefits available in the respective markets noted below for the year 2022, all non-resident investors are advised to update their Certificates of Tax Residence, issued for the year 2022. As customary, such certificates remain valid for the calendar year of issuance. The pertinent details of the investor on the issued Certificate of Tax Residence (i.e. name, address, etc.) has to match the name and address associated with the client’s account.
In Czech Republic, the Certificate of Tax Residence must be an original document or alternatively a certified copy, with a wet ink signature and/or stamp. In case the document does not have a wet ink signature and/or stamp, the document must be certified by a notary, confirming the document is an original document or a true copy of the original document issued by the tax authority of the particular country, and must also be apostilled. In this market, the Certificate of Tax Residence shall also be supported by a Beneficial Owner Declaration. The requirements for Beneficial Owner Declarations are as follows:
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- since local laws and regulations are not specific about the age of the Beneficial Owner Declaration, UniCredit Bank Czech Republic and Slovakia, a.s. has decided to apply a less strict approach and we ask our clients to deliver Beneficial Owner Declarations not older than 3 calendar years following the year when the document was issued (e.g. a Beneficial Owner Declaration received in December 2021 will be valid until 31 December 2024)
- the Beneficial Owner Disclosure/Breakdown is required for each income / redemption payment and should be issued after the record date; an alternative is for the local sub custodian (i.e. UniCredit) to provide a declaration that all valid documents (including the Beneficial Owner Declaration) are in place and will be delivered upon request in case the Tax Authorities perform an onsite audit of the paying agent
- in order to act consistently, this approach will be applied to all income / redemption payments, i.e. not only in cases where the Czech National Bank acts as paying agent
- if applicable, the updated Beneficial Owner Declaration should be delivered to UniCredit as soon as possible - in the absence of the updated Beneficial Owner Declaration, the maximum tax rate, i.e. 35%, will be applied.
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In Romania, in order to apply the favorable fiscal treatment provided by the Double Tax Treaties between Romania and other signatory countries, the non-resident is required to provide the income payer with a tax residency certificate issued by the relevant authorities, valid for the period when the income was obtained. The tax residency certificate should stipulate that the foreign beneficiary was tax resident during the year(s) in which the Romanian income was received. The tax residency certificate is valid for the year in which the payments are made with an extension of the first 60 days of the following year, provided that the residency conditions have not changed. Otherwise, the withholding tax rates in force in the domestic legislation are applicable. The certificate should be provided in original or the digital equivalent of the original in case the respective tax administration issues such document. The original document will have to be translated into Romanian.
In Russia, Certificates of Tax Residence should be provided only by the actual recipients of the income from securities held via Owner Accounts, whereby the actual recipients might be UniCredit’s client itself (owner account holder) or a third party non-resident as disclosed by the client. The Certificate of Tax Residence shall also be supported by a Beneficial Owner Representation (“BOR”). Please note that the form of BOR, to be completed by the clients, will be provided by AO UniCredit Bank. Foreign nominee account holders are currently not required to collect Certificates of Tax Residence and BORs from their underlying clients. Where required, Certificates of Tax Residence shall be presented apostilled and will have to be translated into Russian.
In Serbia all non-resident clients are advised to update their Certificates of Residence. Certificate of Residence must be provided as an original document. Notarization and legalization of the document is not required, however the document needs to be signed and stamped by the relevant authority of the client’s domicile country. The certificate is valid for the calendar year of issuance. Please note that the name and the address of the investor on the issued Certificate of Residence has to match the account name and address at the CSD. Additionally, if requested, documents proving that the investor is the actual beneficiary of the income have to be submitted.
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Impact on Clients: Updated tax documents for 2022 should be provided as soon as they become available in January 2022, in order to avoid the application of standard tax rates (which will otherwise be applied until valid updated documents are received).
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