Greece: Introduction of omnibus account at AthexCSD and sales tax-related obligations for transactions outside AthexCSD

01.04.2021

Note: This announcement, originally published on 19 March 2021, has been further updated to confirm the migration date and provide additional details. The changes have been highlighted.

Clearstream Banking¹ would like to inform customers of the upcoming changes to be introduced by AthexCSD linked to its authorisation under the Central Securities Depositories Regulation (CSDR) and the impact of those changes on customers.

Effective

12 April 2021

AthexCSD will be authorized as CSD under CSDR and will introduce a new account type, i.e. omnibus account, into its system.

With the introduction of this account type, new reporting, tax collection and payment obligations will fall on AthexCSD participants, registered intermediaries (e.g.entities in whose name the omnibus account is opened, such as Clearstream Banking), as well as other intermediaries in the custody chain, e.g. Clearstream Banking customers. These obligations are detailed below. Further details are still awaiting confirmation in the market and will be communicated as soon as available.

Clearstream Banking together with its custodian will migrate the securitiesto the new omnibus account on 12 April 2021. Separate announcement will be published on the migration timeline shortly.Customers should note that the opening of the new omnibus account at AthexCSD will not have any impact on customers' or their counterparties' settlement instructions.

Settlement of sales transactions within AthexCSD

The current processing of sales tax at the rate of 0.2% being charged on sale transactions continues to be applicable.

Settlement of sales transactions outside AthexCSD

Sales transactions (and in some cases FOP deliveries) settling outside AthexCSD in shares listed on a regulated market or multilateral trading facility operating in Greece will become reportable to AthexCSD and subject to 0.2% sales tax, payable to the Greek Tax Authorities, on the value of the transaction.

The sales tax is calculated in Euros on the sale value of the shares and borne by the seller. If no price has been recorded, the tax is calculated on the Athex Stock Exchange closing price at the settlement date.

The Greek law provides some exemptions from sales tax which are outlined at the end of this document.

Reporting

As a registered intermediary in the settlement chain, Clearstream Banking will:

• Prepare tax declaration files on internaldelivery versus payment (sales)transactions settled in Clearstream Banking's books and send them to Citibank Athens, our local custodian, for further reporting to AthexCSD and the Greek Tax Authorities.

Customers will be responsible for reporting to Clearstream Banking:

• Free of payment deliveries (FOPs) settled in Clearstream Banking's books;
• Free of and against payment deliveries settled within customers' books;
• Any transfers outside customers' books of which the customer has knowledge. Customers must ensure appropriate arrangements with their underlying clients and throughout the custody chain for the purposes of fulfilling the compliance with this reporting requirement.

Customers can find the format and contentof the declaration file as provided by AthexCSDin Annex below.

Clearstream Banking will send the declaration files received from customers to Citibank Athens for further reporting to AthexCSD and the Greek Tax Authorities.

Payment of sales tax

Clearstream Banking will:

• Calculate the sales tax amount (0.2%) on the internal delivery versus payment (sales)transactions and debit the tax amount from customers' accounts;
• Debit the tax amount from customers' accounts as reported by customers in their tax declaration files;
• Pay the sales tax on all transfers identified and/or reported as subject to sales tax to Citibank Athens for further credit to AthexCSD and the Greek Tax Authorities.

In accordance with the current information available from the market, Clearstream Banking expects to debit the sales tax from customers' accounts on the 12^th calendar day of each month for the transactions that settled in the previous month and were identified as taxable.

Declaration file

As an annex to this announcement, customers can find the template provided by AthexCSD to be used to file declarations of transfers settled outside AthexCSD and subject to the Greek sales tax.

Please note that Clearstream Banking is awaiting further clarification from AthexCSD on the meaning and use of certain fields within the template, such as 'Accountable person'. We will advise customers as soon as we receive this information.

How to submit declarations

Starting from settlement date 12April 2021 and until settlement date 11June 2021, customers should send their declaration files directly to Clearstream Banking via an encrypted email to [email protected]. Password must be sent via separate email.The method of communication will be provided shortly.

As from 14 June 2021, customers will be able to use the same tools applicable for the purposes of reporting French FTT and Spanish FTT.

Deadline for submitting declarations

Customers are required to submit their declaration files to Clearstream Banking by the second business day of the month, following the month in which the reportable transfer was settled.

Exemptions from Greek sales tax

Pursuant to the Greek law, several exemptions from the Greek sales tax have been inserted through various legislative texts. These exemptions are provided for information purposes only. It is the responsibility of the customer to determine the eligibility for exemption as relevant.

• Tax exemption due to transfer of another non-taxable product (Bonds, ETFs, DSS, Rights, ELPIS, ADR, Warrants);
• Transfer of securities with no change of beneficial ownership;
• Transfers of securities from a usufructuary to the legal owner for the establishment of a usufruct, as this does not constitute a transfer of securities per L. 4569/2018;
• Transfers of securities to or from a Joint Investor Share scheme;
• Transfer of securities by Special Negotiators in the framework of transactions involving Mutual Funds (Decision 1121862/10014/Β0012/18.1.2008);
• Transactions involving transfer of securities to and from the International Finance Corporation (Chapter 9 Art. VI of L.3759/1957 and Individual Administrative Decision 3/2017);
• Transactions involving transfer of securities to and from the European Bank of Reconstruction and Development (Art. 26 L.4416/2016);
• Transfer of securities to a foreign exchange market, to the extent that the Greek exchange market has a common settlement mechanism with that foreign exchange market and an equivalent FTT is levied on the foreign jurisdiction (Art. 16 L.3842/2010);
• Exemption from the imposition of FTT based on decision by the Ministry of Finance (cases of transposition or contribution of shares in case of a share capital increase);
• Transfer of shares due to Donation/Parental Benefit or inheritance.

Retention and disclosure of documentary evidence

Documentary evidence of details of all transactions and, where applicable, proof of exemption must be retained by the customers and must be submitted upon request from Clearstream Banking or Greek Tax Authorities. By holding Greek securities in an account with Clearstream Banking, customers will be deemed to appoint Clearstream Banking and Clearstream Banking's depository for Greek securities as their attorneys-in-fact for the purpose of providing the information to the Greek Tax authorities, if requested by the latter.

Roles and responsibilities

With regard to reportable transfers for which the customers are responsible, neither the content nor the accuracy of the reports will be assessed by Clearstream Banking and the customers will assume the full responsibility of the accuracy of the return.

Note: This Announcement is provided for information purposes only and does not aim to give any legal or tax advice. Clearstream Banking strongly recommends that customers assess whether and how their business is impacted.

Clearstream Banking therefore makes no guarantees, representations or warranties and accepts no responsibility or liability whatsoever as to the veracity, accuracy or completeness of these documents and under no circumstances will be liable for any loss or damage caused by reliance on any opinion, advice, statement made or any information provided in this document.

It is the responsibility of the Clearstream Banking customer to fulfil all requirements and obligations that result from the introduction of the Greek Sales Tax and customers acting on behalf of their clients should analyses whether and how to support the processing of the Sales Tax for their clients.

To comply with all the requirements of the new law, customers are requested, before instructing an actual transaction, to secure the advice and guidance of a professional tax advisor who is familiar with the relevant facts.

The customer is deemed to indemnify Clearstream Banking for any taxes, penalties, interest thereon and other costs that Clearstream Banking may incur as a result of Clearstream Banking's reliance on the information reported by the customer to Clearstream Banking, including the amount of sales tax indicated by the customer or the claim to be entitled to exemption from sales tax.

Further information

For further information, please contact Clearstream Banking Client Services or your Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.

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