Clearstream and Xceptor to offer service for withholding tax processing

By Megha Bhattacharya

Deutsche Börse Group’s post-trading services provider, Clearstream and automation software provider Xceptor today entered into an agreement for offering a redefined service for withholding tax processing for financial intermediaries. The new collaboration is expected to enhance customer service with the rise in volumes, complexity and regulation.

According to the companies, the two companies will deliver a joint service providing customers with automated and scalable processing capabilities for operational withholding tax. The standardised process allows for full automation of tax documentation workflows, accurate tax rate determination and an optimised withholding tax relief and reclaim process.

Andrew Kouloumbrides, CEO at Xceptor, said, “The Xceptor Tax Solution is already the de facto industry solution for 5 of the top 10 global custodians. The partnership with Clearstream, takes us onto the other side of the process, laying the foundations for an industry shift. We are delighted to be partnering with Clearstream in bringing this initiative to market.”

Recently, Clearstream selected US-based Finomial’s client lifecycle management technology in a bid to automate trade documentation for alternative investments such as hedge funds and private equity. The partnership enables Clearstream’s users to take advantage of the fully automated trade documentation completion. The client interface automates collection, provision of individual customer declarations, reduces risk and aims to deliver investor transparency.

Samuel Riley, Head of Investor Services and Financing at Clearstream, said, “Our clients rightly put their focus on asset servicing processes and delivery. A harmonised and streamlined withholding tax service is a key part of the solution and a cornerstone of efficient and transparent cross-border markets. With Xceptor, we found an excellent partner to build our tax service vision for the industry thus supporting our customers best.”