Bank customers’ requirements have changed drastically in recent years. Country-specific tax reporting is playing an increasingly important role in the range of cross-border services offered by banks. Tax compliance and customer transparency are the main driving factors here.
Any financial institution wishing to stand out from the competition can offer its customers detailed, attractive tax reporting services.
A high degree of automation in the creation of tax reports and the opportunity to make retrospective corrections complete the optimal package for banks.
National ‘onshore’ tax reporting
In addition to tax assessment and the resulting tax calculation, documentation based on legal requirements and tailored to customer-specific needs is required for all tax-relevant transactions.
SECTRAS covers both customer-specific reporting and reporting to the German authorities responsible for tax issues.
- Translation-specific intrayear individual tax certificates (EStB – Template III)
- Annual tax certificates (JStB) based on the official template for private investors or company assets (Templates I and III)
- Income Statement (EA)
In addition to information on income and the type of income, the income statement includes all other tax-relevant information, such as the date of inflow, the interest period, the consumption of loss offsetting pools and FSA, and sums offset against KESt, SolZ, and KiSt.
- Loss certificates (VB) for customers:
Loss certificates are used to report losses that the bank cannot offset against capital gains liable for tax that are generated during the calendar year.
- Notification of issuance of a corrected annual tax certificate to the customer’s local tax office in the event that the customer does not return their invalidated annual tax certificate to the bank within the statutory four-week period.
International ‘offshore’ tax reporting
International political developments on tax compliance are forcing banks to improve the quality of their customer service and reporting systems, thereby also increasing the tax compliance of their customers.
The resulting increases in requirements for annual tax reporting for foreign customers pose new challenges for all national and international banks.
SECTRAS can also be used by banks not based in Germany to provide high-quality reporting services for their foreign customers.