Nearly 100 industry experts and clients gathered last month at the Convene center in downtown New York City for presentations and panel discussions on cross-border tax withholding challenges faced by The Depository Trust & Clearing Corporation’s (DTCC) and its clients. The 22nd annual Global Tax Forum – the first significant in-person conference hosted by DTCC since the COVID-19 pandemic – featured a packed morning of discussions, Q&As and educational panels on both international and domestic tax issues
Related: Highlights from DTCC's Asset Services Forum
Focusing on 1446(f)
Much of the discussion focused on getting ready for 1446(f) regulations that become effective on January 1, 2023. The 1446(f) regulations impose a 10% withholding tax on dispositions of US partnerships by non-US investors and will be the first time that brokers and custodians will have tax withholding obligations on delivery vs. payment transactions. DTCC provided presentations on what it is doing to help the industry comply with 1446(f), including disseminating tax withholding data that it receives from partnerships and also sharing its members’ tax forms to help clients process withholding correctly on delivery-vs-payment (DVP) transactions.
“Staying educated on these topics is key to providing the best possible service to clients,” said Ellis Levy, DTCC Managing Director, Tax. “The annual DTCC Global Tax Forum enables us to really dig into operational and industry initiatives in a rapidly changing tax landscape.”
Global Tax Services
Some of the other topics covered in the forum included DTCC’s own developing tax product solutions, such as 1446(f) announcements and The Depository Trust Company’s (DTC) tax form repository to help participants comply with new regulations. In addition to 1446(f), DTCC also discussed the rollout of a new announcement to provide the industry with interest-related dividend data on ETF distributions. The day ended with an insightful panel discussion on EU withholding tax processing and ideas on how to improve that process.
The Global Tax Forum, held annually since 1998, is one of DTCC’s longest-running annual client events. It was cancelled in 2020 in the uncertainty of the COVID-19 pandemic and held virtually in 2021.
“We have missed networking with colleagues and the interactive exchange of ideas, and we are thrilled to be back together in person this year,” said Levy.