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Tax Processing as a Service

The TPS Platform

The Tax Processing Services (TPS) Platform is the market’s first comprehensive tax relief and corporate action outsourcing solution for central security depositaries, custodians, and other financial intermediaries seeking to provide tax relief to their clients and help them all realise their full tax relief potential.

Designed and developed in collaboration with leading financial institutions, TPS puts the clients’ needs first, by providing powerful features and capabilities that help them navigate the complexities of tax relief on income payments and other corporate actions, whilst also streamlining operations and reducing risk.

Who Can Benefit?

The TPS System is equipped to support CSDs in their various asset services both domestic and cross-border. With Acupay’s help, CSDs can utilize TPS to support their direct servicing of foreign banks holding domestic securities. TPS can help CSDs expanding their current suite of services and attract non-resident intermediaries on a direct relationship basis. Acupay’s TPS can also support CSDs offering services to any local or foreign participant in cross-border securities on deposit with the CSD.

In addition, the TPS System could be implemented as a comprehensive tax relief and corporate actions management solution for a number of other financial intermediaries—these could include such entities as global custodians, brokers, asset managers, private wealth managers, and others.

Because of the System’s unique and modular structure, TPS can be tailored to the specific needs of each client. In this way, the potential scope of each client’s experience is virtually endless.

TPS Solution for CSDs

In 2015 a platform called T2S (TARGET2-Securities) was launched by the European Central Bank (Eurosystem)—a securities settlement engine which allowed for local Central Securities Depositories (CSDs) to increase their competitiveness by offering a centralized settlement system across all European securities transactions both domestically and cross-border.

The launch of T2S has had a transformative effect on both European and global financial markets—in addition to the immediate benefits achieved from increased efficiency and reduced settlement costs, financial market players now have unique opportunities to streamline their back-office operations and provide innovative, value-added services to their clients.

Acupay’s TPS technology can enable CSDs to realize their full potential in this new and competitive post-trade environment.

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TPS Solution for Financial Intermediaries

TPS platform can help global custodians, asset managers, investment advisors and any other financial intermediaries to manage the full tax relief process on behalf of investors, from creation and management of beneficial investor documentation to the payment of the reclaimed amount. TPS is a modern outsourcing solution for financial entities seeking to improve their current tax relief services or to attract more clients offering a new type of service that is capable of automating tax relief and maximizing customer profits.

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Why Choose Acupay?

Since 2005, Acupay has been employed by capital market participants to neutralize the impact of cross-border withholding taxes on nearly $325 billion of international securities. At present, TPS is host to over 7,500 unique investors and contains data on nearly 70,000 securities. Acupay’s TPS platform offers sophisticated end-to-end tax relief services for all types of fixed-income and equity securities, including depositary receipts, to a varied institutional client base—such as custodians, broker-dealers, CSDs, asset managers, and hedge funds—in any market where there is potential for tax relief or reclaim.

TPS Solution Features

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TPS Solution Features

Acupay’s TPS System is a fully-automated and completely secure platform delivered as a service, offering innovative back-office and tax service capabilities all in one centralized hub. A number of fully customizable and user-friendly features are available to clients of the system:

  • Tax Relief Through All Channels

  1. Custodians using TPS have access to Acupay System's patented tax relief technology, which can determine taxation and documentation requirements for any combination of security type, investor type, and country of origin.
  2. Depending on the investment country, investors (or their financial intermediaries) can obtain tax relief via three channels: Relief-at-Source, Quick Refund and Standard Refund.

  • Tax Reclaim Potential Assessment

  1. Financial intermediaries and beneficial investors can access a full assessment of their tax reclaim potential depending on the investor profile in TPS, taking into account the statute of limitations and local market deadlines.
  2. TPS processes and reconciles data in relation to income events, security positions, tax withheld at source and outstanding tax relief requests (if any).
  3. The tax reclaim potential assessment offers significant insight into tax reclaim opportunities evaluated from a cost benefit perspective.

  • Beneficial Owner Profiling, Form Generation, and Document Management

  1. Financial intermediaries and beneficial owners can use TPS to manage profiles which are created by uploading, via a range of secure and streamlined transmission methods, the relevant beneficial investor information.
  2. Beneficial investor documents can either be generated by TPS and populated with the profile information or created in advance by the financial institution and uploaded to the BO profile. Original documents may also be collected, verified and reconciled against TPS records.
  3. Automated alerts notify the financial institution about any expiring documents that must be renewed (e.g. Certificates of Residence) or documents that may be potentially invalidated by BO profile updates.

  • Tax Computation

  1. TPS delivers detailed information on calculations performed employing a sophisticated, powerful computation engine that supports many security types, calculation rules and day/count convention methods.
  2. Depending on the investment market regulations, TPS can calculate and record taxation on a daily basis (e.g. Italy, Belgium, Portugal) or on a record date position basis (e.g. Germany, Spain, Switzerland).

  • Corporate Actions

  1. Financial intermediaries can manage corporate action events of any type on any kind of security via TPS in an automated manner, with the purpose of assessing their tax impact and obtaining tax relief via any available channel.
  2. TPS is SWIFT-enabled and compliant with ISO 15022/20022 standards and can be tailored to proprietary procedures, events, and communication methods, depending on specific custodian needs.

  • Straight-Through Processing and Real-Time Reporting

  1. Secure and automated electronic communications between TPS and our clients’ systems are facilitated by SFTP and HTTPs channels, which are set-up and configured in advance and operate without any further operational efforts.
  2. Data that is received, processed, validated and reconciled systematically and in real-time to maximize speed and efficiency and to minimize operational cost and risk.
  3. Reporting is available via the TPS Dashboard in real-time through its secure, simple and user-friendly interface offering customizable views, rich data search and filtering capabilities and practical extraction methods.
  4. External API technologies, which will provide further connectivity options to clients in terms of both data transmission and reporting are in Acupay’s product roadmap.

To view detailed information on how TPS has already been utilized as an outsourcing solution for a major European CSD, please explore the following link: TPS Leaflet

To request a demo or TPS or for more information, please contact the Product Team:

+44 20 7382 0340

product@acupay.com