SIX Securities Services solves withholding tax issues for investors in Switzerland
Through its new Advanced Tax Services – Reclaim, SIX Securities Services has created a solution for Switzerland’s banks and investors to overcome the complex, country-specific and opaque processes that currently define reclaiming withholding taxes. SIX Securities Services estimates that losses to banks and investors as a consequence of these complexities could be to the tune of billions of Swiss Francs.
SIX Securities Services today announced its new service to reclaim withholding taxes for Swiss banks and investors, Advanced Tax Services – Reclaim.
Designed as an end-to-end service, the new Advanced Tax Services – Reclaim offering promises to change the way the industry processes tax reclaims in the future.
Up until now, the process to recover withholding taxes for investors has been complicated. Differences between countries and their tax laws, complex processes for tax recovery that have been unclear or unhelpful and a general lack of awareness around what they are entitled to, have led to end investors in Switzerland potentially losing billions of Swiss Francs worth of income on their investments.
To overcome these challenges and provide better after tax returns for investors SIX Securities Services has created this service to take over the entire process of reclaiming taxes for banks and their clients –end investors, pension funds and insurance companies. This includes the creation of market-specific tax forms, coordination with relevant tax authorities, and even the final tax refund itself.
According to Michael Ripken, Head of Operations, SIX Securities Services, ‘This solution streamlines and optimizes the complete value-chain – banks gain from greater efficiency through reduced complexity and opportunities for new client acquisition. Investors on the other hand benefit from higher returns on their investments.’
Agreeing, Valerio Roncone, Head of Markets & Clients, SIX Securities Services, said, ‘Double taxation leads to significantly lower returns for investors – up to billions of Swiss Francs per year. In a time of pension concerns in Switzerland, this new service from SIX Securities Services provides significant cost savings for banks. And significantly enhanced after-tax portfolio performance for investors. This really is an ‘All gain. No pain.’ solution.’