WTax

Withholding tax recoveries are often overlooked in the hedge fund industry due to the complexity of the reclaim process. However, this area has become increasingly critical as tax leakage can significantly impact fund performance, and institutional investors increasingly expect recoveries to be pursued. Join WTax’s {{linkedin_mention(urn:li:person:qcNqENMADk|Julia Bricker)}} and {{linkedin_mention(urn:li:person:jvUbufBgIm|Philippa Dembo)}} on December 5th at 11:00 a.m. ET for a webinar addressing common tax recovery challenges for hedge funds and the performance benefits of an effective reclaim strategy. Register here: https://lnkd.in/exT9yNJH #WithholdingTax #TaxRecovery #HedgeFunds #FundPerformance

Today marks the close of the public comment period for the South African National Treasury’s discussion document on the tax treatment of Collective Investment Schemes (CISs). The Treasury invited submissions to gather industry perspectives on its proposals, which include a potential shift to a full flow-through tax model. As a global leader in withholding tax recovery, WTax recognises the importance of engaging in discussions that shape the future of tax policy. By sharing our insights, we aim to support well-informed decision-making and highlight key considerations for ensuring the competitiveness and efficiency of South Africa’s investment fund industry.   In our submission, WTax focused on: >The potential implications of the flow-through model on South African CISs’ ability to reclaim foreign withholding taxes (WHT). Specifically, tax transparency under this model could mean that South African CISs themselves would no longer qualify as resident taxpayers, a requirement to access benefits under many Double Tax Treaties (DTTs). This could result in higher withholding tax rates being applied to cross-border investment income. >The broader impact of the proposed changes on the competitiveness of the South African investment fund industry. We believe our insights will contribute constructively to the ongoing dialogue on this critical reform.   For more background, revisit our earlier LinkedIn post: https://lnkd.in/dEmmNwPi   Follow WTax for further insights and updates.   #Tax #Investing #TaxPolicyUpdates #InvestmentFunds

On 7 November 2024, the Court of Justice of the European Union delivered a pivotal ruling addressing the discriminatory nature of the Dutch dividend withholding tax regime concerning non-resident unit-linked insurance companies. This decision underscores the EU's dedication to upholding the free movement of capital under Article 63 TFEU, particularly in matters related to dividend withholding tax. Click the link below to read more. https://lnkd.in/gzKfCBpj #WithholdingTax #CJEU #Netherlands #TaxNews

Yesterday, the EU Council officially adopted the FASTER Directive, introducing harmonised and digitised procedures for withholding tax (WHT) recovery across member states. You can read the official press release here: https://lnkd.in/d2ttdTcu This landmark decision aims to tackle the pervasive issue of overwithholding taxes on cross-border investments, which has long delayed refunds and burdened investors with complex processes. The adoption of this directive is clear recognition that overwithheld WHT is a costly and widespread challenge—a challenge WTax has been tackling for years. Our cutting-edge technology and deep expertise already set industry benchmarks for speed and efficiency in withholding tax recovery. With the FASTER Directive on the horizon, our proprietary tools, like automated submission systems and AI-powered document management, are perfectly aligned to help clients maximise the benefits of these new streamlined processes. Review the key details and features of the FASTER Directive below. If you would like to learn more about how the FASTER Directive may impact you, please do not hesitate to contact us directly: https://lnkd.in/eu45wKAf #WithholdingTax #FASTERDirective #EUCouncil #InvestmentReturns

A key development in the tax landscape was announced on 2 December 2024, with the Competent Authority Agreement between Norway and the U.S. released by the IRS. The agreement removes Article 20 restrictions in the Norway-U.S. Double Tax Treaty, restoring treaty benefits for U.S. Regulated Investment Companies (RICs). This change is a positive step for U.S. RICs, which have faced ongoing challenges reclaiming Norwegian withholding taxes since 2008. Click the link below to learn more. #WithholdingTax #DoubleTaxTreaty #InvestmentFunds #RICs

When challenges arise, preparation makes all the difference.   WTax remains the only provider to have filed claims continuously through both transitions in the German market, setting the standard for innovation and reliability. While others faced delays or stopped filing German claims during the digital transition, WTax’s innovative use of Robotic Process Automation ensured uninterrupted service from the very start, despite portal limitations for bulk uploads.   Our clients benefitted from efficient submissions and proactive solutions throughout Germany's evolving tax reclaim process.   See the full timeline below of how WTax stayed ahead. #Innovation #Technology #DigitalTransformation #TaxReclaim

As we head into a busy December, we want to wish our processing team, pictured here, the best of luck as they work diligently to ensure all claims are filed on time. This team is just one part of the many talented groups at WTax, including service, sales, tech, tax technical, and more, all working together to deliver exceptional results. For a behind-the-scenes look into our processing world, be sure to check out our previous interview in the Asset Servicing Times with our Head of Processing, Madonna-Leigh Hendry: https://lnkd.in/eGJd_VPQ Here's to a successful and productive month ahead! #TeamWork #TaxExperts #BehindTheScenes

At WTax, our cutting-edge technology is at the heart of everything we do. In a recent interview, Ashley Gritzman, our CTO, reveals how advancements in AI, including large language models, and WTax’s world-leading tech team are transforming withholding tax recovery. From processing thousands of documents in seconds to optimising claim maximisation through proprietary algorithms, our technology helps ensure clients reclaim as much as possible, as quickly as possible. Click here to read the full interview - https://lnkd.in/d8d8KS4p #Technology #Innovation #ArtificialIntelligence #WTax #TaxRecovery

Following the recent announcement by the U.S. Treasury to begin discussions on a comprehensive tax agreement with Taiwan, we asked our network to weigh in on the potential benefits of such an agreement. ✅ The results are now in:   The majority of respondents (63%) identified encouraging investment as the most significant benefit, followed by strengthening U.S.-Taiwan ties at 25%. This reflects the potential impact such an agreement could have in addressing double taxation and fostering cross-border trade and investment opportunities.   These results highlight the importance of tackling withholding tax burdens to unlock greater returns for investors. At WTax, we remain committed to helping investors navigate these challenges and maximise their potential for growth.   #DoubleTaxation #USTaiwanRelations #CrossBorderInvestments #WithholdingTax

In today’s financial world, speed is everything. Earlier this month, the European Securities and Markets Authority (ESMA) announced plans for the EU to move to a T+1 settlement cycle by October 2027. This shift, designed to improve efficiency and reduce risk, reflects the growing demand for faster processes in financial markets globally.   At WTax, we understand that speed is not just a competitive advantage—it’s a necessity. That’s why we’re committed to delivering fast, efficient solutions, ensuring our clients can stay ahead in an industry where timing is everything.   #FinancialNews #EfficiencyMatters #GlobalFinance #TaxSolutions