German CSD Clearstream is the client, as regulatory-solutions provider BearingPoint develops a solution to handle reporting obligations under TRaCE – the new tax-withholding regime pioneered by Finland.
BearingPoint RegTech’s tax reporting platform FiTAX will be expanded with capability to handle reporting according to the new TRaCE regulation, says a press release from the provider.
The purpose of TRaCE – short for Treaty Relief and Compliance Enhancement – is to provide a global solution to the challenges around cross-border withholding tax relief. Clearstream is registered as Authorized Intermediary for TRaCE Finland.
The initiative to TRaCE comes from the OECD, inspired by similar systems in the US and Ireland known as Qualified Intermediary regimes, QI. For background, and insight from Finland’s pioneering effort, see this article and session video from PostTrade 360° Helsinki 2020, where BNY Mellon experts Lorraine White and Pilar Espejo shared their knowledge.