MiKaDiv Solution: End-to-End Tax Reporting and Data Infrastructure

MiKaDiv represents one of the most significant regulatory changes in European tax reporting, introducing new requirements for transparency, data accuracy, and connectivity across the investment lifecycle.

For financial institutions, MiKaDiv is not just a reporting obligation – it is a fundamental shift in how tax data must be managed, validated, and delivered.

TaxTec provides a MiKaDiv-ready solution, enabling institutions to meet regulatory requirements through a connected, end-to-end data and reporting infrastructure.

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What is MiKaDiv?

MiKaDiv (Mitteilung Kapitalertragsteuer Daten) is a German regulatory framework requiring the electronic submission of detailed data related to:

Dividend payments
Beneficial owners
Custody chains
Withholding tax applied
Transaction activity

The Challenge: Fragmented Data Across the Lifecycle

For most institutions, the data required for MiKaDiv does not exist in one place. Instead, it is spread across:

Issuers and market infrastructure
Custodians and intermediaries
Internal systems and client records
Reporting and compliance platforms

This creates significant challenges:

Data inconsistency and reconciliation
Limited visibility across the custody chain
Manual intervention and operational risk
Difficulty meeting strict reporting timelines

A New Requirement: End-to-End Data Connectivity

MiKaDiv introduces a new expectation: Data must be connected across the entire lifecycle.

This includes:

Beneficial owner identification

Custody chain mapping (including LEIs)

Securities and income data

Transaction activity (pre- and post-dividend)

Tax treatment and exemptions

Without a connected model, meeting these requirements becomes operationally complex and high-risk.

The TaxTec MiKaDiv Solution

TaxTec enables financial institutions to meet MiKaDiv requirements through a connected infrastructure approach, integrating data, workflows, and reporting across the ecosystem.

1. Data Aggregation & Standardisation

Collect and standardise data from:

Custodian systems
Client and investor records
Transaction and income data
Market and issuer sources

Ensure consistency and readiness for reporting.

2. Beneficial Owner & Custody Chain Mapping

Identify and validate beneficial owners
Map custody chains end-to-end
Attribute Legal Entity Identifiers (LEIs)
Ensure full transparency across intermediaries

3. Transaction & Income Validation

Validate dividend and income data
Capture withholding tax applied
Monitor transaction activity (including relevant trading patterns)

4. Workflow Automation & Controls

Automate data validation processes
Apply rules-based logic
Track processing stages and exceptions
Maintain full audit trails

5. UUID Generation & Lifecycle Tracking

Generate unique identifiers for each submission
Track reporting across lifecycle events
Manage updates, corrections, and amendments

6. Integration with Reporting Platforms

TaxTec integrates with reporting providers (such as Label) to:

Generate MiKaDiv-compliant XML schemas
Ensure accurate submission to BZSt
Maintain alignment with evolving regulatory requirements

A Connected Ecosystem Approach

MiKaDiv cannot be solved through a single system in isolation. It requires a connected ecosystem, bringing together:

Issuer and market data providers
Custodian and operational data layers
Reporting and schema generation platforms

TaxTec plays a central role in this model by:

Connecting and structuring the data required for reporting
Bridging the gap between operational systems and regulatory output

Preparing
for MiKaDiv
and Beyond

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MiKaDiv is part of a broader trend toward:

Increased tax transparency
Standardised reporting frameworks
Greater regulatory scrutiny

Future initiatives, including FASTER, will continue to require:

Higher data quality
Cross-border consistency
End-to-end connectivity

Who This Solution Supports

Providing the infrastructure needed to meet both current and future regulatory requirements, TaxTec supports:

Global
Custodians

Asset
Managers

Banks and Financial Institutions

Intermediaries within the custody chain

Why Choose TaxTec

End-to-end data connectivity
MiKaDiv-ready architecture
Integration with reporting platforms
Automation of complex workflows
Scalable across markets and volumes