BNP Paribas’ Securities Services business is implementing RAQUEST’s MiKaDiv solution as it prepares for Germany’s new withholding tax reporting procedure, which takes effect on 1 January 2027.
The implementation extends an existing collaboration between the two companies. BNP Paribas already uses RAQUEST’s STTI Gateway to transmit digital tax reclaim applications to European tax authorities.
The MiKaDiv suite will support the bank’s reporting obligations across several roles in the custody chain. As a German sub-custodian, BNP Paribas will report directly to the Federal Central Tax Office (BZSt) on behalf of clients. It will also exchange reports and responses with other intermediaries, (I)CSDs and custodians, and handle indirect reporting requests from intermediary clients.
Preparing for wider digitalisation
The system is intended to bring these different reporting requirements together in one solution. BNP Paribas said the implementation forms part of its broader effort to digitalise and automate tax processes, including the exchange of information with tax authorities.
The bank described the move as a first step towards preparing for the EU FASTER Directive in 2030.