Tax Calculations & Reporting

As part of the processing of corporate benefits, Ecex.Exchange handles the calculation and deduction of withholding tax. Tax can be recorded as follows:

  An overriding rate for all holdings on a particular securities account

  An overriding rate for one holding on a particular securities account

  A rate applicable to all residents of a particular country

  A rate applicable to all residents of any country in a particular regional group

  An overriding rate applicable to a particular country of residence for investors in respect of a particular country of tax residence of an issuer Overriding rates are held as numeric values at account level or the level of a single holding; however, for other settings, rates are defined using a user-defined code that identifies an entry in a configuration table where the actual numeric rates are held independently for:

  Equities

  Preference securities

  Debt instruments
Parameters for each corporate event include the following settings:

  The default tax code applicable in the absence of any other indication

  The algorithm used to determine the appropriate rate of tax, which can be one of:  Based on the country of residence  One rate for all

  The tax method, which can be one of:  Net  Gross The GIIN number (Global Intermediary Identification Number) used in FATCA reporting can be maintained at the level of the investor’s name and other static data.