Tax Processing as a Service
The TPS System
The Tax Processing Services (TPS) System is the market’s first comprehensive tax relief and corporate action outsourcing solution for Central Securities Depositories (CSDs), custodians, and other financial intermediaries seeking to provide tax relief to their clients and help them all realise their full tax relief potential on their foreign investments.
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 a tax processing outsourcing service which equipped to support CSDs with their delivery of domestic and cross-border asset services. With Acupay’s help, CSDs can utilize TPS to support their direct servicing of foreign banks holding domestic securities. TPS can help CSDs to expand 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 outsourcing solutionfor 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.
TPS Solution for Financial Intermediaries
TPS System can help global custodians, asset managers, investment advisors and any other financial intermediaries to manage the full withholding 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.
Why Choose Acupay?
Since 2005, Acupay has been employed by capital market participants to neutralize the impact of cross-border withholding taxes on over $342 billion of international securities. At present, TPS hosts over 7,500 unique investors and contains data on nearly 70,000 securities. Acupay’s TPS System offers sophisticated end-to-end withholding tax relief services for all types of fixed-income and equity securities, including depository 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
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:
Upload and manage relevant beneficial investor information.
Apply for a WHT reduction to the treaty rate at the time of payment.
Calculate and record tax based on required variables and market conventions.
Upload, process, validate and reconcile data systematically for reduced operational efforts.
Assess potential for tax relief, accounting for investor details and statutes of limitation.
Simple user-friendly interface offering real-time data with customizable views and filtering
Generate documents populated with beneficial investor information.
Apply for a WHT refund before tax is transferred to the tax authorities.
Manage your documents with automated alerts for expiration or invalidation.
Apply to reclaim WHT from tax authorities.
Manage any type of corporate action event on any kind of security with automated processes.
Secure, automated communications between TPS and your systems via SFTP and HTTPs channels.
Learn more about TPS
To learn more about how TPS and how it is already been utilized as an outsourcing solution for a major European CSD, please download our TPS Leaflet.
You can also schedule a demo of TPS with our Product Management and Client Engagement team to see it in action.