Allen & Overy, in partnership with Clearstream and Euroclear, has advised on the drafting and implementation of bondholder tax certification procedures in the Czech Republic.
"These procedures are designed to provide for the effective management of issuers’ post-issuance withholding tax compliance obligations arising under the new 2022 Czech Eurobond taxation rules," Allen & Overy informed. "The procedures represent a complex multiparty information chain arrangement, which will enable Czech issuers to once again tap into the essential Eurobond market while allowing them to duly address the withholding tax obligations that they have as withholding agents. This should relieve issuers of the existing financial and reputational risks, and significantly reduce the costs of financing by enabling issuers to avoid the adverse consequences of grossing-up payments to investors."
According to Allen & Overy, the procedures were finalized and approved by the International Capital Market Services Association.
The Allen & Overy team was led by Partner Petr Vybiral and included Senior Tax Adviser Michal Dusek and Junior Lawyer Jan Mourek.