SIX Securities Services, the business area responsible for post-trade services at SIX, has agreed an exclusive partnership with Confinale for tax reclaims. The first customer will be Raiffeisen Switzerland cooperative in St. Gallen. The Tax Reclaim Service is part of an entirely new type of overall solution for banks and investors provided by SIX Securities Services.
Interest and dividends from foreign companies offer huge potential for optimizing returns for investors because of double taxation. According to the Swiss Federal Tax Administration, in 2015 only CHF 22 billion out of a total of around CHF 29 billion in withholding tax paid was reclaimed. One of the reasons for this gap is the complex, country-specific and opaque reclaim process.
For that reason, as at 1 January 2017 SIX Securities Services, in collaboration with Confinale, is launching a new, efficient, transparent and low-cost solution for reclaiming withholding tax. Raiffeisen will be the first customer to use the Tax Reclaim Service.
Gabriela Ziltener, Head of Investment Products, Raiffeisen Switzerland: "Using this new service we will enable our customers to reclaim tax efficiently and at no cost and thereby to optimize their income. The Tax Reclaim Service will be available to individuals and legal entities with their tax domicile in Switzerland or abroad."
Roland Staub, Partner at Confinale says: "The fact that one of the most respected providers of infrastructure and services in the Swiss financial sector has asked us to contribute our knowledge and our industry-leading software solution to its tax service offering makes us very happy and provides confirmation for the strategy we have chosen to pursue. This innovation partnership is another important milestone for our relatively new company. We look forward to a close and long-lasting partnership."
Valerio Roncone, Head Markets & Clients SIX Securities Services, adds: "With this tailor-made solution we are confident of creating significant added value for our customers. The positive feedback from the market spurs us on to drive forward with our service-based approach and to apply ourselves more closely to our customers' operational needs."
Confinale is a Swiss consultancy and software development company that assists banks and other financial service providers in tax and regulatory matters. The company was established in 2012 and now looks after the needs of more than 30 banks in Switzerland and abroad with its team of tax and legal experts, IT specialists and business analyst. Focal points of its business are the automated reclaim of withholding tax, country-specific client reporting, automatic exchange of information (CRM issue tool and FI reporting), Fatca/QI, MiFID II / FIDLEG and wealth advisory with a tax dimension.
The Raiffeisen Group is Switzerland's leading retail bank. The third-largest banking group in Switzerland, it has 1.9 million cooperative members and 3.7 million customers. The Raiffeisen Group has a presence throughout Switzerland, covering 977 locations. The 270 legally autonomous and cooperatively structured Raiffeisen banks are amalgamated into Raiffeisen Switzerland cooperative. The latter is responsible for strategic management for the Raiffeisen Group as a whole. Through its Group companies, partnerships and affiliates, Raiffeisen offers a comprehensive range of products and services to individuals and companies.
SIX Securities Services is one of Europe’s best performing post-trade service providers. SIX Securities Services offers comprehensive clearing, settlement, custody, collateral management and repo trading services for
Switzerland and for clients in 65 markets around the world. In addition, as a key part of the Swiss Financial Market infrastructure, SIX Securities Services operates the platform for the electronic processing of land registration and mortgage transactions, the trading platform for the money market transactions of the Swiss National Bank and the platform for the settlement of interbank payments. Furthermore, SIX Securities Services offers fiduciary management of registered mortgage notes, as well as e-bills and direct debits.
SIX operates the infrastructure underpinning the Swiss financial sector and offers a comprehensive range of services around the world in the fields of securities trading and settlement, financial information and payment transactions. The company is owned by its users (approximately 140 banks of various orientation and size). Its workforce of over 4,000 employees and presence in 25 countries throughout the world generated operating income of CHF 1.8 billion and a Group net profit of CHF 713.7 million in 2015.