Industry Insights & Trends

How long does it take to process a withholding tax reclaim?

The processing time taken by the global Tax Authority can vary depending on the country, but it generally takes anywhere from one month up to two years. However, there are a number of processes TaxTec undertake to ensure that there are no unnecessary delays to the indicative timeframes.

How are withholding tax reclaims affected by changes in tax laws or regulations?

Changes in tax laws or regulations can impact the eligibility for withholding tax reclaims. The entity type, documentation required, and the process for submitting claims. It’s essential to stay updated on tax law changes and adjust reclaim processes accordingly.

How long does it take to receive payment on standard reclaim claims?

The timeframe for receiving payment depends on the country involved and the processing times of the relevant tax authority. For standard claims where all required documentation is complete, payment is typically received within a few months to 12 months from submission, although some jurisdictions may take longer.

We actively monitor the progress of claims and keep clients updated throughout the process, including any delays or additional requirements from the relevant tax authorities.

Why are so many firms still leaving withholding tax unreclaimed?

In many cases, it comes down to operational complexity rather than lack of entitlement. Cross border withholding tax recovery often involves fragmented data, multiple intermediaries, varying country requirements, manual documentation processes, and limited internal resource capacity.

Historically, many firms have viewed tax reclaims as administratively burdensome and difficult to scale efficiently. As a result, significant recoverable value is often left unclaimed.

At TaxTec, we believe modern automation, workflow orchestration, and connected operational models can fundamentally change this.

What impact will MiKaDiv and FASTER have on operational tax teams?

MiKaDiv and FASTER are expected to significantly increase the importance of data quality, entitlement validation, reporting transparency, and operational coordination across the tax lifecycle. The direction of travel is clear. The industry is moving toward more structured, connected, and accountable tax operating models.

For operational tax teams, this means increased focus on data lineage, workflow visibility, reporting accuracy, operational scalability and ecosystem connectivity.

Firms relying heavily on fragmented or manual processes may face increasing operational pressure as these regulatory frameworks evolve.

How much operational risk exists in manual withholding tax processes?

More than many firms initially realise. Manual tax reclaim and operational tax workflows can introduce: Inconsistent data handling, missed deadlines, reconciliation challenges, reduced transparency, operational bottlenecks and increased dependency on key individuals or spreadsheets.

As regulatory expectations continue to increase globally, firms are increasingly recognising that operational tax processes are not simply administrative functions they are becoming important areas of operational risk, governance, and scalability.

Is withholding tax recovery a cost centre or a strategic value opportunity?

Historically, many firms have viewed withholding tax recovery as a reactive operational cost. However, the market is increasingly recognising that efficient tax recovery can directly improve client outcomes, recover lost basis points, strengthen client servicing, and enhance operational value delivery.

Combined with automation and modern operational infrastructure, tax recovery is increasingly being repositioned as part of broader operational efficiency and strategic client value creation.