This site uses cookies to provide you with a more responsive and personalized service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

Bookmark Email Print page

Operational tax matters

Opportunity lies within change


Operational tax – does it matter?

In the current environment, the financial sector faces a multitude of different challenges: ongoing volatility in the markets, cost cutting programmes, increasingly complex regulations, and constantly changing tax and operational rules. The complexity of managing these challenges is further increased by the tendency for globalisation and increasing cross-border competition. One of the areas which needs to be managed carefully is the operational tax environment.

Our integrated service offer

Please find below details of the operational tax areas in which we can serve you. We propose an integrated service offer, perfectly tailored to your specific needs in any of these areas.

Financial Transaction Tax (FTT) - It is moving forward Financial Transaction Tax (FTT) - It is moving forward
In September 2011, the EU Commission published a draft Directive for the introduction of an EU-wide Financial Transaction Tax (FTT). Given the difficulty faced in achieving a common agreement between the 27 Member States, the EU Commission decided in 2012 to try to introduce this tax through the Enhanced Cooperation Procedure (ECP).
Operational tax matters - Foreign Account Tax Compliance services Foreign Account Tax Compliance services | Get ready now
Financial institutions need to act now in order to understand the scale of the compliance challenge they face and to have the best chance of an orderly and cost effective implementation of the required process and procedures.
Operational tax matters - EU tax reclaim opportunities EU tax reclaim opportunities | Take advantage of favourable ECJ/EFTA case law
For more than 20 years, the ECJ and the EFTA Court have dismantled discriminatory or restrictive measures to the extent that national rules deter investors of other member states from crossborder investments.
Operational tax matters - EU Savings Directive EU Savings Directive | Be prepared for phase II
A review process of the EUSD directive has been running for several years with an aim to ‘close the loopholes’ of the current EUSD. This process resulted in European Commission proposals for a reviewed EUSD.
Operational tax matters |The tax matrix The Tax Matrix | A highly flexible tool for banks and investment funds
The Tax Matrix is a customised tool, providing an overview of relevant tax aspects in relation with investments funds, their investors and their investments, also in relation with the taxation of any type of financial products on a cross-border basis.
Operational tax matters - Pan-European tax reporting Pan-European tax reporting | A challenge for funds
Nowadays, UCITS and other investment vehicles are invested and their shares or units distributed in various countries around the world, which may trigger tax issues to be managed on the fund’s income side,
Operational tax matters - Tax reporting for private banking clients Tax reporting for private banking clients | First class services required to stay competitive
Financial institutions have individual clients who may be resident in various jurisdictions all over the world. Any income generated on portfolios held by these individuals is usually subject to tax in the home country of the investor.
Operational tax matters - The Qualified Intermediary regime The Qualified Intermediary regime | A full range of services to serve you
The QI status allows financial intermediaries to avoid a considerable workload of administrative tasks in relation to the U.S. source income payments and, above all, makes it possible to preserve customer identity with regard to non-U.S. investors.

Our multidisciplinary teams can help you

Our operational tax teams combine in-depth experience in operational tax matters with a truly multidisciplinary approach, combining the services of experienced tax advisers, consultants and auditors as and when required.Our Luxembourg teams have strong relations with highly skilled operational tax teams within our international network. You will find the key contacts on each of the dedicated inserts.

What is operational tax?

Operational tax refers to the rules relating to withholding tax, tax reporting, and the taxation of financial products, investment funds and their investors. In practice, the operational tax area includes matters such as:

  • Application of, and compliance with, the EU Savings Directive
  • Obtaining, maintaining and managing the U.S. qualified intermediary status
  • Application of FATCA requirements
  • Tax reporting obligations for investment funds
  • Exploiting favourable ECJ decisions in relation to withholding tax
  • Managing global withholding tax requirements on financial products
  • Managing taxation of investment fund vehicles and their investors
  • Producing tax certificates for private banking clients

Why does it matter?

Operational tax aspects impacting your banking, funds or insurance business can be looked at from different angles:

Risk management Tax optimisation (Compulsory) reporting and auditing Tax processes optimisation

Ensure and monitor compliance with operational tax requirements on an ongoing basis. 

Example: EU Savings Directive and FATCA

Ensure optimisation opportunities are identitied.

Example: non-discrimination rules to reclaim tax unduly withheld

Ensure obligatory and voluntary reporting as well as auditing obligations are complied with

Example: QI audits, German tax
reporting for funds

Ensure compliance with operational best practices, aim to streamline and automate tax processes where possible.

Example: automated tax statements production and reporting



Related links



Stay connected:
Get connected
Share your comments
More on Deloitte Luxembourg
Learn about our site

Recently published