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® 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.
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®.
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.
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.
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.