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Withholding Tax Application

Withholding Tax Application


A storm of increased tax complexity has steadily descended upon broker-dealers of all sizes across the globe in recent years. Accelerating government regulations, increasing tax reporting requirements, and growing client demands have significantly expanded tax compliance risks and costs for brokerage firms.

These factors place increasing pressure on broker-dealers’ tax departments. Small cracks in tax systems are growing larger under the stress of processing more data and resulting in more errors and costly corrections. Brokerage firms will continue to bear a growing burden for documenting tax details and withholding proper taxes.

Time is of the essence to make changes in order to attain tax reporting economies of scale and achieve regulatory compliance as tax management evolves from a seasonal to a year-round activity.



Adding efficiency to operations, accelerating the adoption of new technologies, and responding to business conditions is critical. Broadridge’s Withholding Tax (WTAX) application is an alternative to the costly resource and expense-draining manual process or an in-house developed program.

WTAX provides immediate visibility into transaction-level events subject to withholding to assess and validate rate/exemption determinations based on Account Holder reference data and Payment classifications. In addition, the application supports Sub-Accounting structures, whereby beneficial owners and Non-Qualified relationships can be managed, updated and adjusted for payment/withholding allocations in real time.

WTAX enables firms to maintain all their foreign and domestic account withholding tax activities in one agnostic and modernized web-based application, allowing for real-time adjustments / corrections and on-demand reporting.


This tool allows users to access three prior years of data, while being able to update current and prior year data and automates real-time updates, what historically has been a manually intensive process, including:

  • Automatically adjusts withholdings based on updates to allocation percentages, document status and client reference changes
  • Allocates income to beneficial owner pools for Qualified and Non-Qualified IMY entities
  • Determines “Blended Withholding Rate” to update Name/Address for withholding determinations
  • Adjustments flow thru to Bookkeeping for feeds into downstream tax systems, such as Tax Managed Services (TMS) or BPS Year End, updating tax buckets keeping them in-sync with the Backoffice.

WTAX is designed to integrate seamlessly with the BPS Backoffice and to support your daily processing as a Tax Information Reporting Utility

  • Withholding activity covered includes backup TEFRA withholding and foreign withholding, including NRA and FATCA.
  • Maintains a history of all payment records and tax withheld
  • Enables extracts to assist with the preparation of Forms 1042-S and 1099 recipient statements at the beneficial owner level.
  • Integrates directly with BPS Bookkeeping systems thru real-time adjustments and allocations to beneficial owner accounts;
  • Provide administrative and supervisory functions to provide you the control necessary to support this regulatory process


Clients need tools to turn disruption into opportunities—enriching client engagement, navigating risk, optimizing operations and growing revenue, and meeting the needs of today and tomorrow. We help them make decisions that create this transformation.

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