Markit | CTI Tax SolutionsVendor Solutions

Markit | CTI Tax Solutions provides web-based tools used by accounts payable and tax departments to allow vendors to complete an online interview and provide information about the products and services they provide.

Customers

  • Banks
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  • Broker dealers
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  • Custodians
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  • Fund administrators
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  • Hedge funds
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  • Insurance companies
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  • Multi-national corporations
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  • Online banks and broker dealers
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  • Private equity firms
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  • Transfer agents

Statistics

  • 70+years of combined subject matter expertise with 1441/FATCA
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Product Summary

Markit | CTI vendor solutions:

  • Vendor Tax Portal

    The Vendor Tax Portal assists accounts payable and tax departments in managing the tax determinations when making vendor payments. Vendors complete a short, online interview to provide information about the goods and/or services they provide.

    The Vendor Tax Portal then determines any tax form requirements for the vendor and notifies the withholding agent of reporting (and potential withholding) requirements for payments made to US and non-US vendors.

  • MD3®

    MD3® is a web based platform that helps US withholding agents and qualified intermediaries validate US tax Forms W-8, W-9, 8233, self-certifications and KYC documentation as required by the mandatory due diligence, withholding and reporting rules under FATCA.

    MD3® simplifies the process of validating tax and KYC documentation in accordance with IRS regulations, to help withholding agents improve efficiency and reduce cost.

    The complex validation process for Forms W-8, W-9 and KYC documents is distilled into a series of simple “yes” or “no” questions. The withholding agent answers these questions based on information from the applicable tax form, documentary evidence or KYC documentation, as well as the agent’s books and records.

    An audit trail is maintained of the validation history, including questions asked and answered. Validation results and form expiration dates are archived, to allow for retrieval to support resolicitations, tax and management reports, as well as IRS audits. MD3® is regularly updated to align with changes in IRS regulations.

  • D-W8®

    Digital W-8® is the first hosted electronic W-8 solution for multi-national corporations offering all the benefits of our installed E-W8™ application at a significantly reduced cost. Digital W-8® automates the solicitation, renewal and validation of electronic Forms W-8 and W-9 for vendor payments using the same validation engine featured used in our popular MD3® and E-W8™ applications. IRS MOUs are also available for Digital W-8®.

  • Reporting

    The Tax Reporting module enables withholding agents to generate the appropriate information returns for submissions to both the IRS and local tax authorities in Model 1 IGA jurisdictions. Supported information returns include Forms 1042-S, 1099 and 8966. UK FATCA and Common Reporting Standard (CRS) reporting will also be supported.

  • Withholding

    The Tax Withholding module analyses tax data elements to provide the correct withholding rate for payments to both US and non-US recipients. The Tax Withholding module will also provide all required Form 1042-S reporting codes when Form 1042-S is required. The module manages the calculation of backup withholding, US non-resident withholding, and FATCA withholding obligations.

  • Outsourcing

    Markit | CTI Tax Solutions outsourcing services provide a comprehensive solution for compliance with domestic, non-resident, and FATCA tax withholding and information return reporting needs. Additionally, Markit | CTI Tax Solutions will accommodate the Common Reporting Standard due diligence and reporting requirements. Services include tax form validation, validation of KYC documents and self-certifications, withholding rate calculations, GIIN/TIN matching, information return reporting, and periodic reviews of compliance.

Key Benefits

  • Compatible

    Vendor Tax Portal works as a complement to MD3® and Digital W-8® electronic form certification tool. When used with Digital W-8®, some of the required information such as the domicile of the vendor, tax form selection and income type, will be pre populated

  • Efficient

    Vendor Tax Portal helps mimimise time, effort and correspondence between your accounts payable department and your vendors. Reduces judgment calls for accounts payable professionals who are not subject matter experts and manages vendor expectations for the information required to be submitted and the reporting that will be required at year end

  • Protective

    Vendor Tax Portal maintains an automated audit trail for documenting foreign-source of non-FDAP payments to foreign vendors and helps make determinations upfront on vendor documentation so that the income sourcing determination is not solely based on invoice information and pressured by strict payment timing terms

  • Change management capabilities

    MD3® enables withholding agents to employ the most recent tax rules and regulations in their validation processes

  • Support for FATCA

    Generally, vendor payments are out of scope for FATCA. However, a small subset may be subject to FATCA. Our Vendor Tax Portal can help distinguish between FATCA and non-FATCA payments. When the portal identifies a FATCA payment, it will direct the vendor to complete the full FATCA certification on a Form W-8. For non-FATCA payments, the vendor will be directed to a substitute W-8 form, which excludes lengthy FATCA certifications