Tax Suitability

Pilar IV of the market leading cross-border regulation solution of BRP Group, Tax Suitability mitigates the commercial risk.

Our publications, uniquely tailored for the needs of the Private Banking Industry, bring “tax chaos” under control. Since BRP Tax is concentrating its efforts on the development of reference manuals for the financial marketplace, this is reducing the costs, risks and time to market for all banks. They are created and updated on the basis of:

  • A direct analysis, by BRP Tax, of the regulations and related tax practice of each country covered.
  • A follow-up of regulatory changes performed directly by BRP Tax and indirectly by national tax/legal experts.
  • The critical review and synthesis of all this material for the use of Private Banks and Wealth Managers.

Country Tax Investment Manuals (TIM)

The Country Tax Investment Manuals (TIM) are addressed to Wealth Managers. The aim is to provide the tax treatment of the different financial products for a tax resident, within the strict framework of a management (or advisory) mandate.

The TIM provides a pragmatic approach that will help define the framework for implementing a tax suitability approach within the bank’s or asset manager’s organisation.

​Country Tax Manuals (CTM)

The Country Tax Manuals provide a comprehensive overview of the tax regulations and practices applying to private banking clients who are resident in a specific country. They contain the information and procedures required from all departments of a Bank, from Compliance to Legal, from Wealth Management to Operations:

  • Tax compliance
  • Suitability of tax investments
  • Operational taxation (tax calculations, reports)
  • Wealth Planning: structures, life insurances, etc.

The purpose of the Country Tax Manuals is to create a common corpus of procedures, which is understood and shared by all.

Behaviour Template (BT)

Behaviour Template (BT) aims to offer digital recommendations on how to prepare or complete an investment proposal, through discretionary management or advisory mandates, that will take into account the tax impact for a Private Banking client.

The focus is Portfolio Management (financial assets): Helping the wealth managers to select financial products for the portfolio, which are fiscally suitable for the country of residence. “Suitable” can be measured in terms of sustainable tax rates, the possibility to deduct fees or set off losses, as well as simpler administrative obligations.

Fees Matrix

The purpose of this fees matrix is to inform on the tax deductibility of fees and expenses charged by a foreign bank to private clients.

The deductibility treatment of fees and expenses refers to personal income tax on financial assets in custody of foreign banks (outside country of residence of the ultimate tax payer). The prerequisite is that the private client is tax compliant with disclosure/declaration of all assets when required.

The types of fees are split into the following categories:

  • Management fees related to the financial assets held in a portfolio.
  • Administrative fees related to banking services.
  • Transaction fees charged on cash and security settlements, including any financial transaction taxes.
  • Credit facilities, in case of credit interest and fees charged for a credit secured by an investment portfolio (Lombard credit)

Country Tax Briefs (TB)

Country Tax Briefs are memo addressed to Wealth Managers. They are short summaries (4-5) of the basic rules to keep in mind when managing the portfolio of a tax resident of a specific country.

Know the Tax Rules of Your Client

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