Circular Letter N° 359 "Documentation and Accounts Structure Protocol - Treaty to Avoid Double Taxation with the USA"

DEPÓSITO CENTRAL DE VALORES S.A.,
DEPÓSITO DE VALORES

Dear Participants,

As you know, the treaty to avoid double taxation between Chile and the USA came into force on January 1, 2024.

Depósito Central de Valores as a Non-Qualified Intermediary (NQI) Custodian and in the context of its Cross-Border Custody Service (including Foreign Stock Exchange - BVE) whose market of origin is the United States of America (USA) has implemented a series of changes and guidelines that give rise to the "Documentation and Accounts Structure Protocol" attached in this circular.

1. Documentation for assets whose market of origin is the USA

All depositors and clients of the cross-border custody service that keep assets whose market of origin is the United States must deliver to DCV the W8 forms that the Internal Revenue Service (IRS) has provided for this purpose, either as holdings beneficiaries or as intermediaries of their clients:

• Intermediary depositors that keep custody of third parties must send the W8 IMY form.
• Depositors that keep their custody must send the W8 Ben, W8 Ben-E, W8 ECI, and W8 EXP forms, as appropriate.
• If depositors keep their holdings and those of third parties, they must deliver both W8 forms (IMY – BEN).

Considering the above, please send us the corresponding documents to This email address is being protected from spambots. You need JavaScript enabled to view it. using the terms indicated in the referred protocol. The deadline to send this form is May 31, 2024.

2. Accounts Structure and Taxes Management Services Fee at Citibank

Due to the implementation of the treaty to avoid double taxation with the United States market and to our role as a non-qualified intermediary, we must implement an account structure as segregated as possible; therefore, in line with the operational requirements of Citibank, we have defined the accounts structure for the cross-border custody and BVE services indicated in the previously mentioned protocol.

For depositors or clients of our depositors who wish to identify before the US Tax Authority and eventually apply for tax benefits, this option is available to open documented individual accounts without charge for tax management fees. All the details of the accounts structure are summarized in the attached matrix of the previously mentioned Protocol.

Finally, you are all invited to review the new version of the Cross-Border Custody Service Guideline, which has been updated and published with information regarding this Protocol.

Documentation and Accounts Structure Protocol

Download

May you have any questions, contact your business executive.
Email | This email address is being protected from spambots. You need JavaScript enabled to view it.
 

Kind regards,
DEPÓSITO CENTRAL DE VALORES S.A.,
DEPÓSITO DE VALORES