Tax Profiles

Setting up a tax profile allows you to set taxes on dividends paid to clients.

To add a dividend tax, click the Add dividend button.

In the selectors, select the instrument group and enter the desired tax percent.

The Rounding mode selector allows to set how the accrued dividend tax will be rounded.

The Dividend rounding mode field is used to set rounding rules specifically for dividend payments.

Rounding rules

• Round ceiling - rounds towards a larger number. For example: 4,2 ➝ 5
• Round floor - rounds toward a smaller number. For example: 4,2 ➝ 4
• Round down - rounds down toward zero. For example: 4.9 ➝ 4
• Round up - rounds upward - rounds away from zero. For example: 4.1 ➝ 5
• Round half up - rounds to the nearest modulo integer larger than the original number. For example: -4.1 ➝ -4
• Round half down - rounds to the nearest modulo integer smaller than the original number. For example: -4.1 ➝ -5
• Round half even - for a number ending in .5, rounds to the nearest even number. For other numbers, the nearest integer to which the rounding is performed is selected.
• Round unnecessary - in this case the netting scale of the specific asset is applied.

Payments mechanism

When paying a dividend to a client, if tax withholding is already configured, two transactions will be generated:

• The first is the full accrual of the dividend amount to the client;
• The second is the debiting of the tax amount from the client's account (to the nominal account).

Thus, the calculation is performed at the moment dividends are accrued, that is designated as the Ex-Dividend Date in the instrument information. The dividend amount to be accrued is displayed for the client in the Future cash flow indicator in the Account ➝ Assets ➝ Summary section.

Nettings for dividends and related taxes are performed in the Daily Operations section.

Please note: Dividends and taxes can be posted to clients on the accrual date, but this will create a cash gap.

General functionality

Click the Duplicate button to copy your current setting.

To save a new or edited setting, click Save in the lower right corner of the screen, Cancel to discard changes, and Show Usage to view the accounts that use this setting.

In edit mode, the setting can be deleted by clicking the Delete button.