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Disclaimer: Vectigal is not a tax advisory company; therefore this literature should not be construed as offering tax advice. All persons should consult with their tax and legal advisors with respect to tax issues. Furthermore, this literature should not be taken as an offer to buy or sell any securities.
U.S. Sourced Income with Non-Qualified Intermediaries and Non-Withholding Qualified Intermediaries
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Vectigal provides relief at source immediate tax refunds at the omnibus pooled account level. The refund payments would be made available on the same day that the dividend and interest payments are made by the U.S. paying agent. Vectigal’s patented method and system put Non-Qualified Intermediaries' (NQI) beneficial owners at the same competitive advantage as Qualified Intermediaries' beneficial owners that are able to receive relief at source. NQI and Non-Withholding Qualified Intermediaries (NWQI) do not have to disclose the actual beneficial owners upstream to the U.S. paying agent at the time of Vectigal’s refund payments. Vectigal provides relief at source at omnibus account level, which is based on “Know Your Customer” principle. The required Internal Revenue Service (IRS) documentation would be settled internally within the NQI and NWQI “Book of Record” per the IRS Chapter 3 and Chapter 4 codes.
There are no upfront fees to speak with Vectigal. Vectigal is paid for its services only when the refund is actually paid to the concerned financial intermediaries. In some cases, our Business Level Agreements (BLA) and Service Level Agreements (SLA) typically lead to new sources of revenue for the concerned financial intermediaries.
Vectigal and Financial Intermediaries
Vectigal Corporation recognizes the unique relationships among financial intermediaries, beneficial owners, and foreign government tax authorities. Therefore, in order to facilitate the immediate “at source” tax refund in all jurisdictional tax markets, Vectigal will accept financial intermediaries' pooled (Omnibus, Commingled, and Nominee) accounts. Vectigal’s business methodology is based on “Know Your Customer” principle, since the knowledge of the actual beneficial owners lies with the financial intermediaries that have relationships with the specific beneficial owners.
In addition, Vectigal will accept global custodians' omnibus account records as “Custody Book of Records”, therefore, global custodians do not have to provide the required jurisdictional tax market documentation (usually provided to the paying agents and foreign government tax authorities) in order to receive “at source” refunds from Vectigal Corporation for their beneficial owners. There is no need to provide:
- Cover Letter listing various Beneficial Owners types
- Certificate of Residency to prove treaty benefits
- Foreign Government Application Form for treaty benefits
- Certificate of Dividend Payment
- Beneficial Owners' Power of Attorney
- And many more required documentation
These jurisdictional tax market requirements would be resolved post refund payment date among the concerned financial intermediaries, Vectigal Corporation, and foreign government tax authorities.
Vectigal operates in all global jurisdictional tax markets where there are tax reclaim opportunities and as governed by double taxation treaties among foreign governments. Vectigal is able to meet all of your beneficial owners' tax reclaims needs.