Introduction to Tax Regulation

The Tax Regulation functionality manages exemptions, where interest is exempt from the withholding tax (WHT) when the rate falls below a certain threshold and reimbursements, with the ability to determine the eligibility of a customer for a tax reimbursement, based on interest paid for a financial year.

Understanding Tax Reimbursement

This Tax Reimbursement functionality explains a situation where a customer is uncertain as to whether he is eligible for reimbursement of tax that he has paid against his interest receipts. For this, the total interest received in various current, savings or deposit arrangements of the customer is compared with a threshold value (currently 250 EUR) set by the tax authorities.

In order to handle this, a new application is introduced to capture the interest or tax as and when it happens, for the eligible products and interest properties. Interest and tax in this application is updated using a logic, which is pictorially represented as follows:

Click here to understand the terms and abbreviations used in this functionality.