In July 2018, a large international banking group has gone live with a new module of BearingPoint’s tax solution EasyTax for real-time French tax calculation, withholding and reporting.

The tax withholding and reporting requirements set by the French tax administration for French-domiciled banks are highly demanding. French paying agents must withhold taxes at source on investment income («Prélèvement fiscal unique” on French residents, “Retenue à la source” on non-residents). Further, they must file and pay withheld amounts to the authorities on a monthly basis via “formulaire 2777”, also including an advance payment in October of each fiscal year. Finally, banks need to disclose extensive information on taxpayers to the French fiscal administration on an annual basis (form «IFU»).

Against this background, a large international banking group acting as French paying agent has decided to use BearingPoint’s EasyTax “France Onshore” module for clients booked on their French platform.  The software is calculating the day-to-day withholding taxes on income transactions accruing on the accounts of both French-resident and non-resident clients. The bank will also use the software to generate reports required by the French tax authorities, and reports intended for the further information of its clients.

The EasyTax “France Onshore” module provides a complete solution for French tax regulations including:

  • day-to-day calculation of withholding taxes
  • Debit of taxes on the level of the bank account of its clients
  • Aggregation of reports required by the French authorities

All of the above functionalities are available for all relevant client types, including both private individuals and legal entities, and both French residents and non-residents.

In addition, the solution also provides customized reports which may be used as an additional service to the client, such as a statement on realized and non-realized capital gains and losses per fiscal year.

The Geneva-based unit of the banking group acts as a central operations unit for multiple country units. By using EasyTax’ Online-Transaction Platform (OLTP) for real-time tax calculation, tax withholding, and tax reporting, the bank can rely on one established software to book and report taxes. Apart from the French module, BearingPoint is also offering, or currently developing, OLTP-based modules to cover Spanish and U.S. Section 871(m) tax withholding.

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