New software TaxTrail

TaxTrail – the new software for applying for German tax certificates along the entire custody chain

Zurich, May 2024

With the introduction of the notification procedure for capital income tax on dividends from shares and depositary receipts (MiKaDiv) starting in 2025, financial institutions are facing new challenges regarding data transmission and compliance for German tax certificates. Our new software TaxTrail offers a comprehensive solution to address these challenges and ensure a smooth process between the institutions involved and the tax authorities.

The software enables German financial institutions and banks worldwide, trading and custodying German stocks, to efficiently collect, aggregate, and transmit the necessary information for the reporting of dividend income and the taxes withheld to the German Federal Central Tax Office (BZSt). Through a user-friendly interface and tailored features, banks can streamline their internal processes and ensure compliance with legal and regulatory requirements.

TaxTrail offers a variety of features, including:

• Flexibility: Whether it is a German financial institution, a foreign custodian or a non-German bank, TaxTrail provides the appropriate solution for each customer group along the entire custody chain.
• Data Collection and Transformation: TaxTrail aggregates the relevant data and converts it into the required output format, taking into account the complex lot logic and specifics for securities lending and repurchase agreements.
• Quality Assurance: TaxTrail verifies the data and ensures that all data is available and consistent.

With TaxTrail, financial institutions can increase efficiency, reduce costs, and ensure MiKaDiv compliance. We are proud to offer a comprehensive solution that enables our various customer groups to successfully meet the challenges of the changing regulatory environment.

For more information about TaxTrail and how we can assist you in navigating MiKaDiv, feel free to visit our website or contact us directly.