MiKaDiv
Get Ready for MiKaDiv Reporting
RAQUEST’s plug-and-play solution enables straightforward and reliable implementation, so you can focus on compliance rather than complex integrations.
The countdown is on
prepare for the MiKaDiv rollout
MiKaDiv Compliance
Starts 2027
From January 1, 2027 MiKaDiv, the German mandatory reporting framework for withholding tax on dividends, will take effect, requiring close alignment with German tax authorities. As a German company, RAQUEST is well connected with local authorities and ensures you meet all MiKaDiv requirements digitally, efficiently, and in full regulatory compliance – with seamless integration into German tax systems.
What to expect
New Digital Reporting for Financial Institutions
German paying agents will be required to report dividend-related capital gains to the German tax authorities via a standardized digital MiKaDiv process. This significantly increases reporting obligations for custodian banks and foreign financial institutions, as withholding tax reclaims will only be possible via the mandatory MiKaDiv interface.
SCOPE
Affected Market Participants
German Custodian Banks and Domestic Paying Agents
A digital report must be submitted, resulting in an ordinal number UUID from the German Tax Authorities for non-German investors. In addition, tax certificates will be issued for investors with tax residence in Germany.
Foreign Financial Institutions
All required reporting information must be disclosed to the sub-custodian. UUID will be used for e-filing of tax reclaims for non-German investors and tax certificates for German investors.
Global Custodians
Reports from custody clients must be validated and aggregated before being sent along the custody chain.
Business Process Outsourcing Firms (BPO)
Having the mandate to process tax reclaims and relief at source on behalf of clients it is also expected from the BPO to manage MiKaDiv reporting.
MiKaDiv
Mandatory Information to be Reported
Types of Essential Content Data
Customer data
Details about beneficial owner(s), custody account number, trustee, and usufruct information.
SECURITIES INFORMATION
Capital income and total number of securities held.
Financial Arrangements
Detailed information on financial arrangements.
Holdings and Transactions
Number of securities on payment date, acquisitions, and disposals up to 1 year before and 45 days after dividend payment. Includes settlement details.
Complete custody chain
Information on each financial institution in the payment chain, including LEI and holdings for every custody account.
Depository receipts
ISIN of deposited securities and subscription ratios.
Types of Reports
Domestic taxpayers
Digital reporting of additional information and tax certificates, including supplementary details.
Non-domestic taxpayers
Digital reporting as a substitute for tax certificates.
Notification of unissued tax certificate or not executed reports
If tax certificates have not been issued or reports have not been processed, notifications along the custody chain need to be sent.
For Omnibus accounts:
Exemption report
Reports indicating no tax deduction or partial tax deduction.
Aggregated reports
Consolidated reports organized by securities and custodian accounts.
Overview
MiKaDiv Reporting Workflow
MiKaDiv serves as a replacement for the existing tax certificate process. The process follows the custody chain. German paying agents are directly responsible for implementing the new procedure. In case of omnibus accounts, foreign financial institutions are required to provide relevant reporting data to the German paying agent. Impacted entities must provide a format and process by which they ensure to receive the necessary information for reporting from foreign financial institutions.
Technical requirements
Technical Report Format
XML Data Structure (FSAK-FM)
SFTP Transmission of Files (ELMA)
Authentication via PKI Enterprise Certificate
Technology AND Tax COMBINED
Your Strategic Implementation
Partner for MiKaDiv
From the beginning, RAQUEST has been engaged in the elaboration of requirements
and specifications of the new MiKaDiv reporting process
Expertise and Customer Focus
With 15+ years in withholding tax, RAQUEST delivers Europe’s leading software for tax processing, combining deep expertise with close client collaboration to create solutions for an interconnected financial industry.
Proactive Approach
RAQUEST collaborates with expert groups and specialized user groups, including the German tax authority and banking associations. This engagement enables active participation in shaping the framework and implementation process.
Sparring Partner and Early Adopter
As a nexus for politics, tax authorities, associations, and the financial industry, RAQUEST guides the technical and procedural implementation of digitalization, leveraging a strong network of decision-makers and advisory board members to identify change early.
Tech and passion
Software is our DNA. The RAQUEST product team brings passion and experience to designing, developing, and maintaining sophisticated software solutions, with a focus on efficient, future-proof, accessible, and flexible web technologies.
MiKADIV MODULES
Plug-and-Play Solution for MiKaDiv
RAQUEST empowers financial institutions to simplify complex tax reporting and achieve full MiKaDiv compliance – efficiently and digitally. RAQUEST’s Product Suite offers dedicated MiKaDiv modules tailored to each role within the process. These modules integrate seamlessly with one another, while also allowing for independent deployment to meet specific needs.
Module
for Foreign Financial Institutions
and BPO
- Handle tax vouchers and UUID responses from custodians
- Integrate with e-filing process
Module
for German Financial Institutions and German Paying Agents
- Manage overclaiming
- Create aggregated MiKaDiv reporting files for filing with German Tax Authority
- Handle tax vouchers and UUID responses from the German wihholding agent
Module
for International Custodians
- Manage overclaiming
- Create aggregated MiKaDiv reporting files
- Handle tax vouchers and UUID responses from upstream custodians
FASTER
MiKaDiv as a Predecessor to FASTER
Building the Foundation for a New Digital Era
With FASTER now scheduled for implementation by 2030, Germany is set to become an early adopter of the FASTER standard – effectively installing MiKaDiv as a “Baby-FASTER” procedure for the German market. This transition offers an opportunity to prepare systems and processes now, ensuring a smooth shift to the new digital reporting era.
FAQs
Based on our experience, no. An Excel-based exchange of data could only be used for individual reports. Overall, however, an exchange with Excel only has technical limitations and we recommend a sophisticated structured data format like XML.
German financial institutions and paying agents are legally obliged to provide MiKaDiv reporting. All (foreign) financial institutions should strongly consider implementing the MiKaDiv requirements in order to be able to provide their clients with a tax reclaim service as part of their competitive service portfolio.
STTI Gateway
Mastering digital claiming procedures
STTI facilitates secure data transfer regardless of the required procedure. The interface supports the electronic submission of applications or seamlessly transfers data to the tax authorities’ web form. Avoid tying up valuable resources by developing a system in-house – opt for a market-proven solution instead.
MiKaDiv Reporting with RAQUEST
MiKaDiv – What does it mean?
MiKaDiv is the new digital reporting procedure for dividend-related capital income in Germany. It requires financial institutions to submit relevant tax data in a standardized electronic format to the Federal Central Tax Office (BZSt). The goal is to fully digitalize and automate withholding tax reporting, increasing transparency, efficiency, and compliance across the financial sector.
MiKaDiv BZSt – Who is subject to the MiKaDiv reporting obligation?
MiKaDiv reporting applies to all German paying agents (e.g., custodian banks) as well as foreign financial institutions that process dividend payments for German securities. Business Process Outsourcing providers (BPOs) and international custodians are also required to submit the relevant reporting data to the Federal Central Tax Office (BZSt).
MiKaDiv Reporting – Who benefits from RAQUEST?
RAQUEST benefits all market participants affected by the MiKaDiv reporting requirements, including:
- Foreign financial institutions and BPO service providers
- German financial institutions and paying agents
- International custodians
They gain access to a future-proof digital solution that simplifies processes, minimizes sources of error, and ensures regulatory compliance. End customers also benefit from faster and more secure handling of their tax-related matters.
Ensure MiKaDiv Compliance with RAQUEST Modules
With the specialized MiKaDiv modules from RAQUEST, financial institutions can manage the legally required reporting efficiently, digitally, and fully automated. The modules cover the entire process, including data creation, data validation, submission of reports to the BZSt and many more features. Thanks to seamless integration into existing systems, MiKaDiv compliance can be implemented in a simple, secure, and scalable way.
RAQUEST provides MiKaDiv modules for:
- Foreign financial institutions and BPO service providers
- German financial institutions and paying agents
- International custodians
RAQUEST MiKaDiv Plug-and-Play Solution – What makes it special?
The RAQUEST MiKaDiv plug-and-play solution enables fast and straightforward implementation without complex IT projects. The system is ready to use quickly, highly flexible, and can be customized to fit existing operational processes. This allows financial institutions and service providers to meet MiKaDiv requirements reliably and on time.
Key Benefits of the RAQUEST MiKaDiv Solution
Full digitalization and automation of all reporting processes
Compliance with all legal requirements and technical standards
Reduced manual workload and fewer potential errors
Fast integration thanks to modular architecture
Experienced team with strong connections to regulatory authorities and industry associations