Telekurs Financial is delighted to be able to offer its expertise to companies in the UK and Ireland to help them comply with the forthcoming EU Directive on the Taxation of Savings Income
Telekurs Financial has enlarged its securities database with the information that clients will need to comply with European Union Directive on the Taxation of Savings Income (EUSD). This enables financial institutions that manage customer accounts in EU member states and the other jurisdictions covered by the Directive to meet the 1 July 2005 implementation deadline.
The EUSD regulates the taxation of interest payments made across borders to individuals within the EU and related territories as well as in a number of third countries (affected territories). It calls for savings income from interest payments made by a paying agent in one affected territory to a resident of another affected territory to be made subject to taxation in accordance with the national laws of the beneficial owner's member state.
A major challenge to financial institutions is to identify which financial instruments are subject to taxation in accordance with the EUSD. At an early stage, Telekurs Financial recognised this as an issue for its clients and began examining the technical solutions available to users of its Valordata
Feed (VDF). The company has also been closely involved with industry bodies across Europe in developing the standards for data requirements around the Directive.
Telekurs Financial has used its extensive network of local data collection centres around Europe to ensure that local requirements are taken into consideration across the affected territories and has now identified and flagged in its database more than 200,000 instruments that fall within the scope of the EUSD. The benefits for paying agents in affected territories are clear: there is now a source of information that solves the complex data issues raised by the EUSD.
As a result of the work it has undertaken, Telekurs Financial has been nominated as the official data provider by the Swiss Federal Tax Authority (EStV) with respect to information relating to the EUSD and the classification of financial instruments.
Beat Koch, CEO of Telekurs (U.K.) Ltd. said: "The structure of VDF, with its encoded and extendible data model, coupled with that fact that all the affected instruments are held in one single database of over 2.3 million global securities, means that Telekurs Financial has a big advantage in solving this market need. Today, we have the industry's most comprehensive database of EUSD-affected instruments, and we hope our new EStV mandate will provide an additional degree of reassurance among financial institutions who choose to receive EUSD data from VDF."
Existing Telekurs Financial VDF customers will be able to access this data via their existing interface. In addition, this EUSD solution will also be available to UK and Irish financial institutions that are not yet VDF clients.
Telekurs (U.K.) Ltd. has held various seminars and organised a Panel Discussion on the EUSD with independent participants at their last User Group in April, held at the London Stock Exchange. A breakfast briefing on the topic will be held on Thursday 16 June at Telekurs (U.K) Ltd. offices in London.