More and more Tax Authorities are digitizing their processes, including the reclaiming of foreign withholding taxes.
The submission of physical forms is gradually being replaced by new digital procedures. Austria, Denmark, and the Netherlands require data transmission, among other methods, via a web interface; Switzerland, for the reclaiming of taxes from Germany, exclusively demands the digital transfer of all information and documents. The German tax authority is also following the example of its neighbouring countries, introducing a digitized reporting and application process in withholding tax processing. Financial institutions need to prepare technically for these new procedures.
If financial institutes decide to configure their own interface, a different software solution must be implemented for each application market. From a capacity perspective, the effort of setting up, implementing, and maintaining this in-house development could become very high for banks in the future. This is due to the fast-paced regulatory changes that can continuously alter the process chain. It would mean that individually built interfaces by the bank would need ongoing adjustments. Perpetual “fine-tuning” would be the consequence, which is why many financial institutions should opt for a market-proven solution.
With STTI (short for: Secure Transport of Tax Information), RAQUEST has developed an interface that enables a secure and efficient digital transmission process. Whether it’s electronic form submission or automated data transfer into the required web form, STTI can cover the various procedures of tax authorities with just one gateway. The STTI interface can be integrated into existing bank systems, providing standardization for different technologies and market processes. Implementation of the gateway is recommended not only because of years of experience and a proven track record but also due to the extensive knowledge of financial authority requirements and complex tax regulations, as well as the comprehensive development invested in STTI for over five years. This makes STTI a mature interface gateway that can be quickly and seamlessly integrated into existing systems and is highly scalable.
By choosing the out-of-the-box solution, RAQUEST takes care, within a subscription framework, of any (including regulatory) updates and keeps the interface up to date. The end-to-end encryption of all data also ensures the highest reliability and security in data transmission. STTI is already in use at over 20 institutions in Europe, making it a certified industry standard.
STTI enables the secure transmission of tax-relevant information and accompanying documents between internal systems of banks, tax or application authorities. Regardless of the required procedure, the interface supports electronic form submission or transfers data into the required web form.
STTI can be used in two ways: it can be employed without introducing the RAQUEST software for an application via your existing system. STTI can also directly connect the RAQUEST withholding tax software to the tax authority, enabling an automated and encrypted end-to-end reimbursement process. In addition to connecting to the BZSt in Germany, RAQUEST STTI already covers the tax authority of the Swiss Federal Tax Administration (ESTV), the Austrian Federal Ministry of Finance (BMF), as well as the Tax and Customs Administration of the Netherlands and the Danish Customs and Tax Administration (SKAT).
Tax authorities of other European countries will also transition to electronic processes over time and provide corresponding interfaces. Therefore, tax domiciles and investment markets in RAQUEST STTI are modularly expandable.
