Get Tax Data Before Payment
Receive tax classification data before payment dates so your firm can apply the right tax treatment and manage distributions on time.
1042-S Classification Announcements
Apply the Right Tax Rate Before Payment
Distributions with multiple tax components can be difficult to classify correctly for U.S. withholding and reporting. DTC’s 1042-S Classification Tax Event Announcements provide issuer-supplied classification information for IRS Form 1042-S before the payable date, helping participants determine the appropriate treatment of eligible payments to non-U.S. beneficial owners.
When a payment can be classified in advance, qualifying beneficial owners may receive a reduced withholding rate at source, rather than being taxed at a higher rate and waiting until year-end for a refund or filing a reclaim directly with the IRS. Participants can improve withholding and reporting accuracy, provide a better client experience and reduce burdensome year-end reclassification activity.
Key Features & Benefits
Use Reduced Rates When Eligible
Help eligible non-U.S. investors receive an applicable reduced withholding rate at the time of payment.
Use One Source for Tax Data
Find issuer-provided classification data in one DTCC source instead of searching across multiple channels.
Reduce Corrections And Refunds
Applying the right rate before payment can reduce year-end corrections, refund requests, and other work caused by overwithholding.
Improve The Investor Experience
More accurate tax treatment at payment helps investors avoid delays while recovering taxes that were withheld in excess.
User Documentation
Access key documents, guides, forms and reference materials that support your use of this product and help you navigate important service requirements.
Resources
- Learn More
Announcements & Reports
Each month, DTCC measures sigma levels for a variety of transaction processes, including those for underwriting, redemptions, dividend and interest payments, and reorganization announcements.
- Learn More
Asset Services Performance Metrics
Monitor the accuracy and timeliness of principal and interest (P&I) payment allocations through DTC's Performance Metrics reporting.
- Learn More
DTCC Learning
DTCC Learning provides access to training materials, educational resources and documentation designed to help users understand DTCC products, services and operational processes.
- Learn More
Reference Documentation
Explore important notices, regulatory rule filings, bylaws, risk management information and operational requirements from DTCC and its clearing agencies.