With Germany’s sweeping MiKaDiv reporting regime set to take effect from January 2027, financial institutions across Europe are facing a fundamental shift in how dividend withholding tax is reported, validated, and reclaimed. RAQUEST, German fintech and market leader in withholding tax technology for financial institutions, announces its plug-and-play MiKaDiv software solution, built around three role-specific modules designed to address the distinct responsibilities across the reporting chain.
MiKaDiv introduces a fully digital reporting framework for dividend income, replacing paper-based tax certificates and requiring detailed, end-to-end transparency. The regime is aimed at strengthening compliance and preventing tax abuse, following high-profile Cum/Ex cases.
“MiKaDiv is not just another reporting requirement – it reshapes how intermediaries manage compliance and data in withholding tax processing along the custody chain,” said Alexander Lerch, CEO and Co-Founder of RAQUEST. “Financial institutions need clarity on their role and a solution that reflects that complexity. That is why we structured our software into three role-specific modules, enabling organizations to implement targeted compliance.”
Foreign Financial Institutions and Service Providers can create MiKaDiv-compliant reports, manage tax vouchers and UUIDs, and integrate with digital tax reclaim processes. German Financial Institutions and Paying Agents are supported with full reporting capabilities, including validation, aggregation, overclaiming controls, and submission to the German Tax Authority. International Custodians can validate and consolidate incoming data, manage risk, and ensure accurate transmission of reporting information along the custody chain.
All modules are connected via RAQUEST’s secure data transfer infrastructure, enabling seamless exchange of information from investor level through to the German Tax Authority. The solution also integrates with RAQUEST’s broader withholding tax suite, including tax reclaim and relief at source.
With MiKaDiv making accurate reporting a prerequisite for tax relief, organizations must ensure both data quality and operational readiness ahead of the 2027 deadline. RAQUEST’s modular approach allows financial institutions to implement targeted solutions based on their role while preparing for wider European initiatives such as the EU’s FASTER Directive.
