KPMG Switzerland and SIX SIS combine their expertise in the area of taxation. In the future, the two companies will jointly offer banks their services for withholding tax exemption and reimbursement as well as tax reporting for foreign private bankers.
Swiss private banks and their clients are under pressure from international tax transparency and the associated automatic exchange of information. Financial institutions must offer their customers straightforward solutions despite complex country-specific tax rules. This includes high-quality tax reporting and efficient exemption and reimbursement of withholding tax (Tax Reclaim).
With KPMG Switzerland and SIX SIS, two leading service providers are pooling their expertise to offer competitive solutions in a tax-transparent environment. For the first time in Switzerland and Liechtenstein, private banks will be able to access two separate services via one interface: Tax Reclaim and Tax Reporting. Previously, banks had to operate their own interfaces for these services. Thanks to the cooperation between KPMG and SIX SIS, banks will in future be able to generate exemptions and refunds for withholding tax as well as tax returns for their foreign customers through uniform access to two different service offerings.
How does the withholding tax refund work?
If private investors hold shares of foreign issuers, they regularly have to pay withholding tax on dividends and, in some cases, on interest, such as the Swiss withholding tax. This is usually withheld directly, whereby bank customers can at least partially recover the withholding tax on the basis of a double taxation agreement (tax claim). Together with third parties, banks offer their clients the opportunity to assert claims for refunds on their behalf with the respective tax authorities or to avoid withholding tax. SIX SIS offers an efficient and transparent solution for this.
What are the advantages of tax reporting?
Foreign bank customers are generally obliged to declare the taxable income generated via a Swiss bank account or custody account and the value of the assets to the tax authorities in the country of tax residence. Financial institutions make it easier for their customers to meet this obligation by preparing tax reports. Multishore Tax Reporting (MTR) developed by KPMG enables banks to compile tax statements according to country-specific tax principles for selected domicile countries.
Cooperation with many advantages
The cooperation between KPMG and SIX SIS will enable banks to meet comprehensive customer requirements for tax-compliant and efficient solutions in the future. This cooperation gives financial institutions the opportunity to benefit from KPMG’s tax expertise and the efficient processes of the financial specialist SIX SIS. In addition, the bank’s technical and personnel costs are also greatly reduced.
Our Services and further information:
- Press release: KPMG and SIX Securities Services offer banks a combined package of tax services
- Multishore Tax Reporting