Asset managers are facing several challenges with operational taxes due to the increasing complexity and scope of global tax regulations, the need for sophisticated data management and technology solutions, resource constraints, high compliance costs, and the necessity for effective risk management.
Addressing these challenges requires a strategic approach, investment in technology, and collaboration with experienced trusted tax professionals.
How can KPMG support you?
Our tax technical support is comprehensive, helping you understand your tax-related risks and entitlements. We cover the entire spectrum of operational taxes across jurisdictions. Our team combines expertise in operational taxes with strategic tax reporting skills to help you manage your tax obligations more effectively.
Our team includes professionals who have worked for custodian banks and asset managers, giving us a deep understanding of the daily challenges, you face. We bring practical insights and innovative thinking to address your operational tax issues, ensuring you can navigate the complexities with confidence.
Our asset management operational taxes services can support you with:
Navigating regulatory complexity:
The global regulatory environment for taxes has become more intricate with the introduction of regimes such as the Automatic Exchange of Information (AEOI) and the OECD’s Base Erosion and Profit Shifting (BEPS) initiatives, including Country-by-Country (CbC) reporting and Pillar Two rules. These regulations require detailed and precise reporting, often on a jurisdictional basis, which can be highly complex to manage in-house we can provide the expertise and assistance you require.
Data management and integration:
Asset managers must source and integrate vast amounts of data from different systems to comply with tax regulations. This includes financial data, transactional data, and compliance data, which we often find are stored in disparate systems. The challenge is compounded by the need for accurate and real-time data to perform the necessary calculations and reporting. Our custodian dashboard can provide real time insights and reporting data.
Risk management:
Ensuring compliance with operational tax requirements is critical to avoid penalties and reputational damage. The complexity of regulations and the need for precise data increase the risk of errors and omissions, making robust risk management frameworks essential.
