Intermediary Agreement DeutschPublished by: Europe Basketball Academy
There is no provision of the German legislator and the German tax authorities on IQ. QI is the application of exclusively American legislation and requires sufficient professional knowledge about IQ requirements, including fatca rules. This basic example shows it best: a German banking client has a securities deposit with his securities bank in which US shares are also located. In the event of a dividend distribution on a US share, a withholding tax of 30% must be withheld. If the custodian bank has an IQ status and the customer has documented himself as non-taxable using a form, the deduction of the withholding tax increases from 30% to 15%. The customer receives a higher distribution. QI may lead to a reduction in U.S. withholding tax on interest, dividends, and proceeds from the disposal of U.S. securities. The bank and the customer "buy" this benefit through the effort of separate documentation from the customer.
Upon multiple requests, our experts again present a German translation of the IQ contract. This follows the main idea of contributing to the improvement of the legibility of the requirements for the German-speaking judicial area. Therefore, in addition to the translation itself, the main focus is on the presentation of requirements, which is based on a long experience, lessons learned from various implementation projects and countless internal discussions. In any case, there is no reduction in withholding tax in the United States without proper and valid documentation from the bank`s customer. The qi status of the bank alone is not enough. It is also possible to provide accurate documentation to the IQ through documents under the money laundering rules. The QI contract, in force since 1 January 2017, provides for a detailed compliance system on the part of the custodian bank with IQ status. This compliance system includes fatca requirements. It is also understandable. Indeed, the question of whether a customer is tax-relevant in the United States must be resolved on the basis of the customer and not on the basis of the tax regime to which a bank must respond. The classification of a client as a non-US specified person at FATCA and as a US tax for IQ purposes would be contradictory and needs to be clarified by the bank with the client and his (tax) legal counsel.
Thus, under the IQ agreement, an (IQ) must fulfill certain obligations, as it superficially seems that there have been few changes compared to the old IQ contract, qualified intermediaries face difficult times. Mandatory self-certification will determine the months or even years to come. .