International client tax calculation & reporting solution
Investing in assets is a growing trend across the globe. With technical opportunities, which open the global market and allow trading for an increasing number of people, also the request for tax reports has been increasing.
Clients are looking for highly sophisticated tax reporting from an increasing number of tax jurisdictions, and financial institutions need to meet their clients’ increasing demands. While providing on-shore related tax reports and bookings is a standard service for banks, producing off-shore reports can be a challenge.
EasyTax helps financial institutions, fintechs, and online brokers in the calculation, the reporting, and the booking of taxes for many different jurisdictions. Our standard software enables banks to produce country-specific off-shore tax reports. This allows them to provide their off-shore clients with a service to ease the burden of their tax filing duties and support private clients with their tax statement submissions. With regards to on-shore requirements, EasyTax generates real-time tax calculation results and bookings for many countries.
EasyTax is a standard solution for client tax reporting and has been in productive use at various customers such as private and wealth management banks, family offices and banking package providers, among others, for almost 20 years. More than 90 financial institutions and online brokers worldwide already produce tax reports for their clients with EasyTax.
An increasing number of banks and online platforms provide international clients with the appropriate tax reports and support them in their tax statement submission. Although this need was initially driven by client requests, the current demand for high-quality tax reports is rapidly growing due to ongoing political pressure, newly established tax amnesties and initiatives such as the Automatic Exchange of Information (AEOI).
The off-shore module currently covers the following countries: Argentina, Austria, Australia, Belgium, Brazil, Chile, China, Denmark, Finland, France, Germany, Greece, India, Indonesia, Ireland, Israel, Italy, Luxembourg, Mexico, Norway, Portugal, Russia, South Africa, Spain, Sweden, Switzerland (including the electronic format of the “eCH-0196 – E-Steuerauszug”*), The Netherlands, Turkey, United Kingdom, and the United States.
Based on our current findings, the following countries are shortlisted for planning and development to meet a significant demand: Canada, Czech Republic, India, Japan, Peru, Romania, and Taiwan. For the modules Canada and Japan, the analysis and the development has already started.
Besides country-specific modules, EasyTax also offers a generic module. The “Swiss Pocketknife” is highly parametrizable with different compensation logics (FiFO, LIFO, Average etc.) for “rest of the world”.
The on-shore reporting module includes on-shore tax calculation, booking and authority reporting capabilities. Based on the applicable tax law for a bank’s country of domicile, the module handles the required tax filing for the tax authorities and the client’s tax, and facilitates a withdrawal of the calculated tax amount with the bank acting as the paying agent.
The on-shore module covers the following countries: France and Spain (in full) and Australia, Luxembourg, Switzerland, The Netherlands, and the UK (client reporting solution only).
The Tax Simulation Suite user interface allows our customers to have an easier access to the country-specific “what-if” portfolio investment simulations modules.
With these features, a user (or an investor) can run individual simulation scenarios and visualize the after-tax performance of assets in their portfolio depending on their country of domicile. The country-specific simulation features are integrated into tax simulation UI.
The following countries are covered: Australia, Austria, France, Israel, Mexico, Spain, South Africa, Portugal, United Kingdom and the EasyTax generic modules.
It is based on a classic three-tier architecture (data base, application server and web client) and supports MS SQL, Oracle and PostgreSQL. EasyTax can be performed on different application servers such as Wildfly (formerly named JBOSS), Weblogic, WebSphere, Tomcat and JAP and users can access EasyTax via the Internet Explorer and an extensive command line-based tool box.
EasyTax supports interfaces to core banking systems as well as to external tax data providers. Based on the delivered tax data and our Big4 tax concepts, the tax client reports can be quickly generated via the GUI (graphical user interface) or using the EasyTax tools - up to several thousands of tax reports per hour.
The generation and provision of country-specific tax reports is a key service when dealing with international end clients: It ensures competitive advantages, supports end-to-end compliance and saves your clients a lot of time. Thanks to the broad coverage of assets, EasyTax can provide tax reporting for traditional investors, and for investors that focus on newer asset classes such as crypto.Learn more
At eToro, we constantly try to improve the services we offer to our clients. The collaboration with Regnology and the use of their EasyTax solution allows us to produce high quality and country-specific tax reports for our clients. It was important for us to deploy EasyTax as a cloud solution and to highly automate the processes. In this way, we can efficiently produce high volumes of tax reports on request.
Tom Spigland, Product Manager at eToro, January 2022