NSD provides its deponents with the opportunity to reduce tax rates on income from a wide range of foreign securities.
Information on the possibility of providing tax exemptions and benefits, as well as the procedure for obtaining them, is communicated directly to holders of foreign securities before making income payments on securities of foreign issuers.
When conducting operations with securities of foreign issuers, both on accounts of NSD deponents and on accounts of NSD in upstream storage locations, the deponent of NSD is responsible for compliance with the requirements of applicable foreign tax legislation regarding taxation of such operations.
Detailed information on the service for reducing tax rates when paying income on securities of US issuers can be found in the sections Taxation of Dividends on American Shares and Useful Information.
The section Documents contains documents necessary for obtaining tax exemptions and benefits when paying income on securities of foreign issuers.
NSD, in accordance with the agreement concluded with the US Internal Revenue Service (IRS), is a Qualified Intermediary and provides a service for reducing tax rates when paying income on American securities.
Tax administration on the owner's depo account opened at NSD. Description, taxation principles, useful links, etc.
NSD provides a wide range of services for withholding taxes when paying income on American securities on nominee holder depo accounts opened at NSD.
Select the type of deponent-intermediary to receive information:
2.1. Non QI
In this section you can learn about the main actions of non-qualified intermediaries when paying income on US securities.
In the understanding of US legislation, a Non-Qualified Intermediary is a person who is a trustee or nominee holder of US securities and has not concluded a Qualified Intermediary Agreement with the US Internal Revenue Service.
To receive the service, the client must first submit the following documents to NSD:
I) "Application for Tax Withholding when Paying Income on US Securities on Nominee Holder/Trust Management Depo Accounts" according to Appendix 4 to the Procedure for Accounting for Rights to Securities Subject to US Tax Code Regulation.
Submission form – Original application. A pre-scanned application can be sent as an untyped document to recipient code NDC000ORK000.
II) W-8IMY Identification Form – non-qualified intermediary identification form. Submitted for each intermediary (nominee holder/trust manager). The questionnaire can be provided in scanned form through untyped EDI document flow to code NDC000TAX000.
*III) If there are several intermediaries in the ownership chain, an AF005 electronic questionnaire (operation code 05) must be registered for each. This questionnaire can be submitted through EDI channels: DCU, NSD File Gateway.
After submitting the specified forms, the client must decide how they will provide identification forms and how they will disclose clients. Select the item of interest to you.
If the investor did not have time to send the form and the increased tax was debited, an application for its refund (Tax Adjustment) can be submitted within the calendar year.
NSD accepts and recognizes corresponding W-8 tax identification forms, including in electronic form, using a confirmed ESIA account (for individuals) through the NSD eW-8 Web Cabinet.
Links to NSD webinars on tax administration: