Do you have foreign investments? Here’s how to declare your tax preferences

Each year, from January 1 through March 31, you may indicate to the companies in which you have invested, or in which you will invest during the year, how you would like taxes on income derived from your investments made through Walliance to be handled.

This choice is relevant if your country of tax residence is different from the country of tax residence of the issuing company or the company distributing the income.

In such cases, a Double Taxation Treaty may apply between the two countries. Depending on the type of income and the countries involved, the treaty may provide for a reduced withholding tax rate, an exemption, or the possibility of subsequently claiming a refund of taxes paid in excess.

To enable Walliance to communicate your tax preferences to the issuing company, you must upload to your personal area a valid tax residency certificate and, where required, the treaty documentation applicable to the relevant type of income and country.

Please note: Walliance performs a preliminary review of the uploaded documentation; however, the actual application of the tax treatment remains the responsibility of the company paying the income, where that company acts as the party responsible for withholding tax or applying the relevant tax treatment.

To request application of treaty benefits, you must provide a tax residency certificate issued by the competent tax authority of your country of tax residence.

The document must relate to the tax year in which the income is paid.

The certificate must be suitable for purposes of applying the Double Taxation Treaty between your country of tax residence and the country of the company paying the income. In particular, it must certify your tax residence for treaty purposes or under the applicable tax laws of your country of residence.

A generic tax residency certificate is not sufficient because it does not meet the required criteria. For purposes of applying Double Taxation Treaties, a certificate specifically issued for that purpose is required. In particular, the document must:

Depending on the country, the type of income, and the applicable regulations, you may also be required to provide a specific treaty form or supplementary declaration.

For example, in order to obtain direct application of treaty benefits to dividends, interest, royalties, or other income paid by a foreign company, additional information may be required, including:

Yes. If you have investments in multiple foreign countries, you must provide appropriate documentation for each country in which the companies associated with your investments are tax residents.

For example, if you are a tax resident of Italy and have invested in projects offered by French and Spanish companies, you must provide two certifications: one valid for purposes of the Italy–France treaty and one valid for purposes of the Italy–Spain treaty.

The tax residency certificate must be requested from the tax authority of the country in which you are a tax resident.

For example, if you are a tax resident of Italy, the certificate must be requested from the Italian Revenue Agency (Agenzia delle Entrate). If you are a tax resident of France, Spain, or another country, you must contact the competent tax authority of that country.

When making the request, we recommend specifying that the certificate is needed for purposes of applying a Double Taxation Treaty with the country in which the issuing company or the company paying the income is established.

Where available, it is preferable to use the form prescribed by the tax authority of the source country or by the applicable treaty. Alternatively, equivalent documentation may be accepted, provided it allows the company paying the income to verify and retain all information required for application of treaty benefits.

Go to your “Account” > “Services” > “Taxation” area, where you can:

If the country of tax residence listed in your account is incorrect, you'll need to update it first in the “My Data” > “Verify Identity and Address” section.

When the income is paid, Walliance will conduct a preliminary review of the documentation received and will communicate your tax preferences to the issuing company.

The company paying the income will assess, at that time and with the support of its advisors if necessary, whether the documentation received is sufficient to apply treaty benefits directly, where available.

Any application of a reduced rate, exemption, or other treaty benefit remains the responsibility of the company paying the income, within the limits and responsibilities established by applicable law.

If you do not upload the required documentation by March 31, it will not be possible to update your tax preferences for the current year through the platform.

In that case, the company paying the income will apply the ordinary tax treatment provided under the laws of the source country, unless it determines otherwise.

You may still consult your tax advisor to determine whether any excess taxes paid can be recovered through your tax return, a foreign tax credit, a refund procedure, or other mechanisms available under applicable law.

If you are unable to obtain the tax residency certificate or the required treaty documentation, your ability to invest will not be affected.

However, you may be unable to benefit from direct application of treaty benefits at source. In that case, any excess taxes paid may be addressed later in accordance with the tax rules applicable in your country of residence and in the source country.

We recommend consulting your tax advisor to determine the most appropriate treatment based on your individual circumstances.