Access best-in-class, proven solutions to support your tax withholding and tax reporting
CTI Tax Solutions from IHS Markit provide tax withholding and reporting modules that allow correct withholding payments to be made to both US and non-US recipients and enable withholding agents to generate appropriate information returns for submissions to both the IRS and local tax authorities in Model 1 IGA jurisdictions.
Ease of use – Generate reports without requiring subject matter expertise
Deliver faster results – Real-time withholding determinations fed into payment systems
Drive efficiency – Quickly exchange documentation characteristics across our solutions MD3®, Digital W-8, E-W8TM, or IPSTM to the Withholding module
Increase reliability - Identify TIN requirements for reduced rates on certain income type and minimize risk of erroneous submissions by rejecting information that does not fit into the IRS e-filing schema. Identify when imported information does not fit into a common or expected reporting format, such as mismatched income and exemption codes or recipient codes
Support reporting requirements - Along with a tax rate, access the appropriate reporting codes for Forms 1042-S, where required, including income codes, recipient codes, exemption codes (Chapter 3 and Chapter 4), and country codes
Withholding and Reporting tools
Enabling financial services firms to analyze tax data elements to provide the correct withholding rate for both US and non-US payment recipients while providing all required Form 1099 and 1042-S reporting codes. The Tax Withholding module manages the calculation of backup withholding, US non-resident withholding and FATCA withholding obligations. The module can be seamlessly installed locally or data can be exchanged via an integrated API as well as sourced from E-W8TM, MD3® or your payment system directly into the module.
Enabling withholding agents to generate the appropriate information returns for submission to both the IRS as well as home country tax authorities for both FATCA and CRS reporting purposes. The platform supports your information return needs, including Forms 1042-S, 1099, 8966, IGA and CRS reporting. Tax filing documents are converted to machine readable files for digital archiving of recipient statements, administrative reports and reconciliation reports. The platform is offered as a hosted or local or installation. As a value-added service, you can also leverage our outsourcing teams to engage in data entry, document filing and recipient statement mailings on your behalf.
Financial institutions (FIs) face a unique challenge as global tax authorities have recognized the benefit of receiving tax reporting on their tax residents as a measure to counter tax evasion. The Organization for Economic Cooperation and Development (OECD) issued a global Standard for Automatic Exchange of Financial Account Information (AEOI), including the Commentary on the Common Reporting Standard (CRS).