Thursday, November 21, 2024

Finastra and WTax collaborate to help asset management firms optimize withholding tax recovery process

Finastra and WTax collaborate to help asset management firms optimize withholding tax recovery process

Finastra is teaming up with WTax, a world leader in withholding tax recovery services, to support asset management firms in recovering withholding tax on behalf of their clients. By introducing Fusion Invest customers to WTax, Finastra will help portfolio and investment managers around the world to deliver net savings for end clients, recovering tax that has been levied on income from securities investments in territories where they are non-resident.

 

“Finastra’s work with WTax benefits all parties and is a great addition to our Fusion Invest value proposition,” said Younes Guemouri, Senior Vice President and Managing Director Fusion Invest, Finastra. “By outsourcing the withholding tax recovery process, asset managers are freed up from the onerous and complex administrative process involved in reclaiming tax across multiple jurisdictions for clients. Since WTax operates on a ‘no win, no fee’ model, it only charges on the basis of successful reclaims, delivering value to asset managers and end customers alike.” 

 

The scale of withholding tax that’s unclaimed is significant. In 2017, the European Commission reported an estimated cost of unclaimed withholding tax recovery of EUR 8.4 billion per year in the EU alone. Often the beneficiaries of the dividends and interest being taxed are institutional investors. The withholding tax can reduce their return on investment and can add up to as much as 35% of the gross income amount. The process of recovering the tax is complex – involving knowledge of double taxation agreements, domestic legislative provisions and precedents.

 

Available globally, WTax’s ISO 27001 compliant technology makes claims more efficient to process and more transparent for clients. Automating the claims process is faster and more effective and eliminates human error.

 

“WTax is thrilled to collaborate with Finastra and join the Fusion Invest ecosystem,” said Daniel Ginsburg, CEO of WTax. “Fusion Invest users can be assured that WTax will streamline the process for recovering withholding tax globally since we assign specialist teams who understand the unique complexity of each jurisdiction to ensure maximum recovery in the shortest possible time.” 

About Finastra

Finastra is building an open platform that accelerates collaboration and innovation in financial services, creating better experiences for people, businesses and communities. Supported by the broadest and deepest portfolio of financial services software, Finastra delivers this vitally important technology to financial institutions of all sizes across the globe, including 90 of the world’s top 100 banks. Our open architecture approach brings together a number of partners and innovators. Together we are leading the way in which applications are written, deployed and consumed in financial services to evolve with the changing needs of customers. Learn more at finastra.com

Corporate headquarters

4 Kingdom Street

Paddington

London W2 6BD

United Kingdom

T: +44 20 3320 5000

About WTax

WTax is a division of the VATIT Group, an indirect tax recovery firm with global reclaim capabilities, an extensive network and infrastructure that provides specialist, fully outsourced foreign withholding tax recovery solutions in over 30 jurisdictions. WTax’s investment in and vision of a truly automated reclaim process, coupled with two decades of indirect tax knowledge, allows their clients to be free of the administrative and complex reclaim processes that hinder investment performance. WTax currently services over 4,000 clients ranging from $10M to $1T AUM and enhances their clients’ annual performance by up to 50 bps per annum. For more information, please visit www.wtax.co.

Corporate headquarters

WTax, 1st Floor Omni House

252 Belsize Rd

London NW6 4BT

United Kingdom

T: +44 (0)203 929 2110

For further information please contact:

CAROLINE DUFF

Global Head of PR, Finastra 

T +44 (0)7917 613586

Ecaroline.duff@finastra.com

finastra.com

STEPHANIE BUCHANAN THOMAS

Strategic Partnerships Manager, WTax

T+44 (0)7876 475544

wtax.co

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