Tax Engine

More innovation. Smarter compliance.

An avalanche of regulations

Banks in Europe are faced with more and more complex withholding tax regulations. In Germany in particular, local withholding tax regulations are very complex with many new rules and amendments introduced regularly. EUSD and FATCA have been introduced lately and the European AEI is on the horizon. Maintaining in-house solutions is extremely costly and involves laborious workarounds and manual processing. Naqoda Tax Engine brings you a turn-key software solution to help you control withholding tax compliance smartly, so that you can focus on innovation more.

A powerful engine

Naqoda Tax Engine is a multi-jurisdiction software solution for automated calculation and reporting of interest income tax and capital gains tax according to German, Austrian and French regulations as well as the European Savings Directive and FATCA regulations. The software is built on a powerful framework that heavily focuses on minimal implementation & integration times, quick time to market and reduced TCO.

From local to international taxation

A central client data repository records all the information required for calculation and reporting. This includes amongst others: client identifier, religion, state, exemption certificate, exemption value, etc. Various client types are supported, from individuals to corporates. The Tax Engine produces customer statements & regulatory reports in accordance with the regulations of the jurisdictions in which the bank operates.

Real-time calculations & instant reporting

Calculation of taxable basis for interest income transactions, securities buy & sell transactions, fund distribution & accumulation, corporate actions & treasury products. Configurable calculation using exemption rules and exoneration amount, loss buckets and foreign source compensation balance. Calculation of base withholding tax and additional taxes such as church tax and solidarity surcharges. Management of client static data. Management of securities static data and computation of securities FIFO chain. Support for backdated transactions & cancellations & calculation of optimisations.

It [Naqoda] does exactly what it says on the tin!
Chief Architect