SOURCE: Acupay System, LLC

Acupay System, LLC

June 16, 2009 16:09 ET

Acupay's Tax Reclaim Service for German Securities Is the First to Deliver Refunds in 2009

NEW YORK, NY--(Marketwire - June 16, 2009) - Acupay's tax reclaim service for German securities hit a home run when it became the first to credit tax refunds on German ADR dividend payments made in 2009! The first round of tax reclaim payments to bank and broker custodians that utilized Acupay's service has already been paid by the German tax authorities.

Beginning in January 2009, more than 75 custodians registered to file German tax reclaims via Acupay's innovative and cost effective system. Claims have been filed by many of these custodians on more than two dozen issues and many of these claims have already been paid by the German tax authorities beginning in May. While withholding tax relief at source is always preferred, it is not available under German regulations. Therefore, the next best thing is to be able to file fast and cost effective tax reclaims that result in the return of withheld tax by foreign tax authorities in a timely manner. Acupay is pleased to report that our service for Germany has delivered!

Stemming from the announcement last year of the discontinuation of the previous DTC "Elective Dividend Service" program on German securities, Acupay leveraged its technology and servicing capability, and negotiated with the German tax authorities to establish an efficient and cost effective process for bank and broker custodians to file tax reclaims on German securities. Germany's withholding tax rules require 26.375% tax to be withheld on dividend payments to cross-border investors and for reclaims to be filed by investors that are resident in countries that have income tax treaties with Germany in order to obtain refunds of any excess tax withheld. Most investors can usually qualify for a reduction in the effective rate to 15% and many non-profit organizations and pension funds can obtain a full refund of the 26.375% withheld.

The Acupay System works in concert with Germany's proprietary electronic refund procedure (the "Datenträgerverfahren" or DTV) allowing such claims to be filed electronically with minimal physical documentation required for most claims. Please refer to Important Tax Notices at for more information on Acupay's tax refund service for German securities. Annex C of the Important Tax Notices contains a list of eligible German securities sorted by payment date.

Acupay working together with depositaries, depositories, custodians, issuers, tax authorities and others, employs innovative technology and processes to simplify and demystify the tax relief process. In addition to withholding tax relief on securities held at DTC, Acupay's services can be used for tax relief on securities held at Euroclear, Clearstream and elsewhere. Acupay is an affiliate of Bondholder Communications Group LLC and has offices in New York, London and Madrid.

For more information on Acupay's services please visit or contact William Salva ( or Andrew Rose ( at 212-422-1222.