Market research of system support for the implementation of the EU directive FASTER (Fast Track Assured and Safer Tax Excess Refunds)

On behalf of the Danish Tax Administration, the Agency for Development and Simplification (UFST) would like to invite suppliers to a market dialogue on a new system for handling new EU legislation in relation to the FASTER directive, which is intended to ensure better, simpler, and more uniform procedures for the relief of excess withholding tax on cross-border investments.
The directive is intended to ensure that EU countries have the necessary tools to effectively tackle tax fraud and abuse. The directive can be found here FASTER.

With this market dialogue, UFST seeks to gain important knowledge from potential suppliers on the market who have experience from similar areas or solutions. UFST would also like to investigate whether there is a standard solution on the market already that can meet our needs or whether there are plans to develop a solution to support the FASTER directive.

The market dialogue should provide insight into whether a standard solution exists or is planned to be developed that can support our needs in relation to:

1. Reporting of several detailed information on dividends from certified financial intermediaries
2. Digital tax certificate residences (eTRC), so that investors only need to obtain one digital certificate from their home country to document which EU country they are residents in
3. A system for ‘relief-at-source’ of dividend tax that will integrate with our existing system-portfolio

Examples of business and technical needs (non-exhaustive):
• The solution must exchange data to other relevant IT systems in UFST
• The solution must integrate access to external foreign IT systems including, for example, a common EU portal
• The solution must provide access and the possibility of approval and deregistration of Danish investors
• The solution must enable automatic reporting of control data from the certified financial intermediaries
• The solution must support case processing so that administrative users can handle situations where reported control data is deficient
• The solution must enable the issuance and revocation of eTRCs
• The solution must enable the approval and deregistration of certified financial intermediaries
• The solution must issue and enforce powers of attorney
• Handling of access control and compliance with logging and security requirements
• Automatic control of submission data

In addition, UFST is interested in what considerations the suppliers make in relation to which technologies and technology stacks the solution is expected to be built on, and whether the solution is implemented in Cloud or On Premise. In addition, it is particularly interesting to have solutions from suppliers that can document experience with larger common solutions in OECD and/or the EU.

For the development of the standard solution and its ongoing maintenance, UFST would also like to clarify how the supplier generally intends to ensure:

• Maximum automation of workflows
• Full compliance with the FASTER directive and functional support of it
• User-friendliness, overview (e.g. status), and reporting options
• Compliance with existing legislation in the area.