CLEARSTREAM & XCEPTOR EXPAND BOUNDARIES OF WITHHOLDING TAX PROCESSING
17 February 2021
Clearstream and Xceptor have entered into an agreement to offer a redefined service for withholding tax processing for financial intermediaries. The joint service will allow for elevated customer service levels while handling ever-increasing volumes, complexity and regulation.
Andrew Kouloumbrides, CEO at Xceptor, said: “The Xceptor Tax Solution is already the de facto industry solution for 5 of the top 10 global custodians. The partnership with Clearstream takes us onto the other side of the process, laying the foundations for an industry shift. We are delighted to be partnering with Clearstream in bringing this initiative to market.”
Samuel Riley, Head of Investor Services and Financing at Clearstream, said: “Our clients rightly put their focus on asset servicing processes and delivery. A harmonised and streamlined withholding tax service is a key part of the solution and a cornerstone of efficient and transparent cross-border markets. With Xceptor, we found an excellent partner to build our tax service vision for the industry thus supporting our customers best.”
Nowadays, institutional investors face cumbersome and manual withholding tax processes across global markets and asset classes. Various legislations and market specificities impede efficient and scalable handling of clients’ tax relief and reclaim requests.
Going forward, the two companies will deliver a joint service providing customers with highly automated and scalable processing capabilities for operational withholding tax. The standardised process allows for full automation of tax documentation workflows, accurate tax rate determination and an optimised withholding tax relief and reclaim process.