Depositary Receipts Market
Updates
September 2013
© 2013 Globe Tax Services Inc.
Overview
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Withholding Tax Overview
ESP Designated Intermediaries
Depositary Reporting
Market Updates
Process Updates
Q&A
Contact Information
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© 2013 Globe Tax Services Inc.
Global Equity Investment Income:
Dividend Withholding Tax Recovery
Foreign ORDs and ADRs
Invests
US Domiciled
Taxpayer, Endowment or
Pension
Dividend Event Occurs
100%
$$$
And Other Jurisdictions
65%-85%
No Reclaim
of Withholding
Foreign Tax
Authority
*Only at this point in the
process are fees collected
85%-100%
With Reclaim
of Withholding
25%-35%
Withheld
But Endowments and Pensions are Exempt!
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© 2013 Globe Tax Services Inc.
ESP Designated Intermediaries
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© 2013 Globe Tax Services Inc.
ESP Reports
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© 2013 Globe Tax Services Inc.
ESP Reports
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Research & reconcile all outstanding claims
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Lists recent payments
Link to the beneficial owner breakdown
Email notification when payment is made
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Rates, ratios, and relevant dates (ORD Pay Date) for completing tax forms in
local terms and ensuring accurate information
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Lists recent rejections and reasons
Email notification when a claim is rejected
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Expedites responses by sending the inquiries directly to the correct GlobeTax
representative(s)
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Provides a tool for managers to ensure that events are not missed and
maximum potential refunds are realized
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© 2013 Globe Tax Services Inc.
South Korea
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Additional data elements
― Record dates as of December 2012
― Full beneficial owner address
― Tax Identification Numbers (TINs)
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OIVs / OPCIVs
— Must provide Form 29-13 / Annex to Form 29-13
— Self-Certification with Korean MoSF audit possibilities
— Depositaries and the local agents will not determine if an
account is an OIV or OPCIV
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© 2013 Globe Tax Services Inc.
Japan (2014 – expected)
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Reduced withholding rates to expire Dec. 31, 2013
― Withholding will increase to 15.315%
― U.S. Treaty reduces this to 10%
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Required documentation
― IRS Form 6166 per beneficial owner (for all entity types)
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Depositaries in discussions with Japanese
custodians regarding documentation requirements
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© 2013 Globe Tax Services Inc.
Depositary Process Changes
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Belgium
— Eliminated exemption for US Charities
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Sweden
— Revised documentation for foreign non-UCITs funds to
receive exemption from withholding tax
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Switzerland
— US RICs now must be disclosed at entity level and provide
certain attestations if claiming over CHF 100,000 in treaty
benefits
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Kazakhstan – not yet in force
― Issues likely to default to 20% withholding with disclosure
requirements to obtain the 15% withholding rate
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© 2013 Globe Tax Services Inc.
EDS Assist®
The relief at source allocation tool
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Uses
– Instruct on EDS (Elective Dividend Service)
elections
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Users
– DTC Participants only (and their clients)
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Metrics
DTC
Participant
– EDS eligible securities
– Currently 19 markets
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Delivery
– Daily via Comerica’s system(s)
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•Security Data
•Ben Owner Data
Features
•EDS Allocations
•Payment mapping
– Daily delivery from GlobeTax for all elections
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Specific instructions for each ‘segment’ of BOs (e.g.
Exempt, Favorable, Unfavorable) ensuring all clients
receive maximum benefit
GlobeTax
– Document collection support
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6166s, Letters of Exemption, applicable renewals
– Payment Mapping File
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Automates payments for each dividend event to all
holders
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© 2013 Globe Tax Services Inc.
Securities Class Actions Services
GlobeTax files claims for our clients who are eligible to share in
settlement funds due to corporate misstatements or omissions.
Value added:
• Asset recovery and protection
• Positioned to benefit from upcoming mega settlements
• Interests aligned with client (no recovery – no fee)
• Outsourced service ensures focus on claiming legal
entitlements freeing you to concentrate on your business
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© 2013 Globe Tax Services Inc.
Securities Claims Service Summary
• Cases Covered
─ Securities Class Actions
─ Insider trading
─ Government disgorgements and restitutions
─ SEC fines
─ Dodd-Frank whistleblower cases
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Securities Class Action Services
─ Case data monitoring
─ Client trade data qualifying analysis
─ Claims processing, filing, and monitoring through payment
• Additional Features
─ Sub-account processing
─ Quarterly client reporting
─ Contingency fee based on funds recovered
─ Dedicated and confidential service
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© 2013 Globe Tax Services Inc.
Contact Information
Brett Lewis – Director
Brett_Lewis@GlobeTax.com
Gregg Lewis – Vice President
Greggory_Lewis@GlobeTax.com
William Treut - Managing Director
William_Treut@GlobeTax.com
Harold Shapero – Managing Director
Harold_Shapero@GlobeTax.com
Len Lipton – Managing Director
Len_Lipton@GlobeTax.com
Jose Bisono – Managing Director & COO
Jose_Bisono@GlobeTax.com
Telephone: +1 (212) 747-9100
New York
London
Madrid
Milan
Sydney
Hong Kong
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© 2013 Globe Tax Services Inc.
Statutory Rate Changes – 2013
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Chile from 20.245% to 18.75%*
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Czech Republic from 15% to 35%
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Morocco from 10% to 15%
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Portugal from 30% to 35%
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Slovenia from 20% to 25%
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Belgium eliminated exemption for
Charities / Foundations (including
US entities)
*Due to change in imputation rate not statutory rate change
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© 2013 Globe Tax Services Inc.