Section 871(m) Eligibility
Streamlining Section 871(m) Compliance
If you are holding qualified derivatives dealer (QDD) status and looking to identify withholding tax requirements or screen the population of indices and ETFs in the marketplace to identify those lacking QDD status, S&P Global's full-service 871(m) offering can cover all your needs from eligibility through compliance.
We determine when an equity derivative is in scope/subject to Section 871(m) and calculate the dividend equivalent amounts. Unlike other service providers, our solution also drills down to the specific US compositions of an index or ETF and calculates the appropriate DEA through integration with the DeltaOne SOLA platform.
Additionally, clients can directly access Section 871(m) outputs and create streamlined functionality through an integration with the S&P Global portfolio valuations solution. No additional API feeds are needed, as Tax Solutions receive transaction data and pull 871(m) results directly from this source.
Why S&P Global?
Minimize risk
Pre-screening of derivative products provides potential withholding rates and amounts
Increase efficiency
Centralized solution for reporting efficiently meets Section 871(m) regulations
Decrease costs
Streamlined workflows on a single platform reduce overall costs and regulatory fines
Address compliance obligations
Validated data lineage and reporting help satisfy Section 871(m) regulation obligations
Access underlying composition data
Applicable weights of the Index and the Corporate Actions events are utilized to calculate the DEA
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Discover how our innovative technology and expert insights can simplify your tax compliance and due diligence processes. Request a demo to unlock the potential for greater efficiency and accuracy in managing your tax obligations.