SIX Financial Information has launched a new tax and regulatory data service, enabling international banks to automatically allocate tax rates for securities subject to the Belgian TOB. The new service is commercially available now on a global basis. As part of the Belgian TOB, there is a new requirement for the tax on any transactions carried out by Belgian taxpayers through foreign banks to be reported to the authorities in Belgium. This means foreign banks that support a Belgian client base are having to explore how to offer the appropriate tax services to their clients.
The new fully automated solution from SIX means banks can quickly access the relevant tax rate for individual transactions. Under the Belgian TOB, there are three possible tax rates depending on the asset class subject to the transaction. With its proprietary ruleset, SIX has identified 14 different individual asset classes applicable for each transaction, which will be included in the service. The individual asset classes delivered will define whether or not the tax is applicable, as well as the specific rate for the transaction.
By providing a single source for complete, reliable and audit-ready information, the solution from SIX streamlines the tax administration challenge for banks so they can focus on ensuring their business runs smoothly. The solution is another example of how SIX is leveraging its award-winning expertise in reference data to create advanced services for the financial industry. As a result, firms can achieve higher automation rates for non-differentiating activities and focus on their core business.
“The global tax climate is becoming ever more complex and financial institutions are constantly on the lookout for more efficient ways to manage their obligations. Our latest offering helps international banks provide their Belgian clients with the most comprehensive support in tax operations”, explains Roy Kirby, Head Product Propositions SIX Financial Information.