The Benefits of Outsourcing the Withholding Tax Reclaim Function

The asset management industry was in a state of flux, even before Covid-19, with an increased emphasis on the reduction of costs and the maximisation of returns. Meeting and even exceeding the demands of clients has become the norm and clients expect their investment managers to be at the forefront of the latest technologies and solutions.

It is therefore imperative that the investment community stay abreast of and apply the various technological developments in the fields of process automation and artificial intelligence.

The benefits of non-core outsourcing

Historically, asset managers have embraced outsourcing, since it became apparent that there is inherent value in focusing solely on the primary or core business. This in turn resulted in the creation of custodians, fund administrators, brokers etc. More recently, these niche asset management service providers have started to outsource some of their own non-key processes or tasks, such as maintaining cloud infrastructure or withholding tax recovery.

The case for outsourcing the investment income withholding tax reclaim process

As access to data and awareness of global market mechanics evolve, niche opportunities and outsourcing services have become more prevalent. Take for instance the evolution of withholding taxes across the globe and the growing awareness of the withholding tax reclaim opportunities available to investors of foreign holdings.

In a growing list of foreign jurisdictions that are characterised by language barriers, tedious manual documentation and a continuously changing legislative environment, investors of foreign holdings are often unaware or unable to reclaim withheld taxes. By applying an arsenal of claim mechanisms, enabled through internally developed technology and trusted relationships with foreign tax experts, WTax meets all of the requirements to provide outsourced withholding tax services.

Partner with a specialist outsourced withholding tax reclaim provider

Over the last few years, WTax has represented thousands of beneficial owners across the world to recoup unclaimed withholding taxes. This knowledge and experience has enabled WTax to become the partner of choice for many asset managers and asset owners alike. WTax offers a unique operating model that assumes the entire administrative burden of the withholding tax reclaim process through a single point of contact, resulting in a low-touch process for clients.

Asset managers, investment firms and individuals concerned about the nuances of global withholding tax practices, or whether investments are adequately serviced from a withholding tax reclaim perspective, should reach out to WTax for an obligation free consultation.

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