We are cooperating with the Tax Administration, and each year we are furnishing data used to pre-populate the tax return forms prior to sending them to the investors for their individual control. It is a huge task for VPS to provide figures for all the VPS accounts. As of year-end 2016, a total of 1,173,326 VPS accounts were owned by 931,425 investors.
The production of the annual consists of two elements
- Annual statements from VPS to the investors
- Calculations and data transfers to the Tax Administration
Annual statements
At year-end VPS produces annual statements for all the VPS accounts. The statements contain holdings, fiscal value of assets plus dividends received and taxable fixed income. When it comes to mutual funds, a separate realisation statement is listing all sales carried out during the year. Similar statements are being produced for warrants, ETNs, ETFs and subscription rights. In 2017 VPS has introduced a novelty when including the fund realisation statements in a combined statement from the fund manager setting out both the annual statement and the realisation statement.
Although most information is pre-populated in the tax return form, please be aware that some information may be missing. These include for example securities that are registered abroad. We therefor urge everybody to keep the annual statement that you receive from VPS and please be sure to check that the information in your tax return is correct.
Calculations and data transfer to the Tax Administration for use in the tax return
- On behalf of the issuers, VPS reports data on shares and equity certificates to the Tax Administration’s shareholder register. The shareholder register is responsible for calculation of gains/losses on sales and taxable dividends, and the data they extract from the register is used for pre-population of the tax return forms.
- With respect to the VPS registered funds, VPS calculates all data for the tax return on behalf of the fund management companies, including taxable capital, taxable profits and taxable gains or deductible losses. There fund management companies, themselves, determine the fiscal rate used for tax reporting.
- VPS also reports data for tax purposes on fixed income (bonds and certificates), selected warrants and ETFs. As of 2017 VPS will also report gains/losses and asset value for the subscription rights.