FS Tax - Trace

TRACE (Treaty Relief And Compliance Enhancement) is an initiative of the OECD Finance Committee. The aim is to automate applications for tax reductions/refunds on a DTA basis.  

In addition to time and cost savings for the taxpayers (investors) involved, the aim is to achieve liquidity benefits. The focus is on tax relief at source. The participating states are free to opt for retrospective refunds using the procedure specified by TRACE. Under TRACE, exemption or reimbursement should be significantly faster and less bureaucratic than with the existing procedures.

KPMG advises you before the introduction of TRACE with regard to the upcoming tax law developments. In addition to the technical concept for the necessary changes, we support you in the necessary reorganisation of processes and systems. Until TRACE is implemented, KPMG will actively participate in the optimisation of your company's conventional withholding tax refund processes or take over the process completely for you. We have tools at our disposal that can be used to automate the process to a high degree on your behalf.

If required, KPMG can provide you with the international GlowTrack tool. This is an internet-based application that can be used to analyse withholding tax, stamp duty and transaction tax on cross-border investments in over 90 countries. This is worthwhile. For example, if tax amounts that were rightly withheld under national law and the DTA can be reclaimed under certain conditions if their withholding is not permitted under EU law (free movement of capital).

Irrespective of the introduction of TRACE, banks, insurance companies, investment companies, investment funds, family offices and other capital investors with international equity or bond investments can benefit from the optimisation or outsourcing of their existing withholding tax refund process.

Please do not hesitate to contact us. We enable you to achieve a complete and speedy withholding tax refund at the lowest possible cost.