TaxTec, Proxymity and Label have announced a strategic collaboration to deliver what the firms are calling the industry’s first fully connected, end-to-end solution for MiKaDiv compliance.
The partnership brings together three specialist technology providers to address the regulation’s requirements across data origination, validation and regulatory reporting — covering the entire custody chain in a single, integrated ecosystem.
MiKaDiv represents a significant shift in how withholding tax compliance is handled across Europe. Unlike previous frameworks, it demands that financial institutions connect, validate and report data across the full custody chain in a structured, auditable format.
The regulation requires end-to-end data connectivity spanning issuer, intermediary and investor layers, validation across multiple participants, and standardised, schema-driven reporting outputs.
The three firms argue that most institutions remain structurally ill-equipped to meet MiKaDiv’s demands. Today’s operational model is characterised by fragmented data spread across custodians, brokers and internal systems, heavy reliance on manual reconciliation, and reporting processes that are disconnected from upstream data flows.
Without a cohesive solution, firms risk operational inefficiency, heightened regulatory exposure and an inability to scale.
The partners also caution against point solutions that focus narrowly on the reporting layer, arguing that MiKaDiv is fundamentally a full-lifecycle data and infrastructure challenge — and that attempting to address only one component creates risk rather than eliminating it.
Under the collaboration, each firm contributes a distinct capability to the end-to-end stack. Proxymity provides direct connectivity to issuer and investor data, forming the upstream data foundation. TaxTec’s platform handles aggregation and normalisation across custodians and intermediaries, along with workflow orchestration, embedded governance and audit trail functionality. Label’s technology generates MiKaDiv-compliant schema outputs and submission-ready regulatory reports aligned to evolving regulatory standards.
Senior leaders from all three companies were unified in their assessment of what the partnership delivers.
TaxTec CEO Stephen Everard said, “MiKaDiv is exposing a fundamental gap in how withholding tax is managed. By bringing together TaxTec, Proxymity, and Label, we are solving that gap at its core, with a fully connected infrastructure spanning data, workflow, and reporting.”
Proxymity CEO Dean Little said, “This collaboration extends our suite of data enabled services into Tax. By seamlessly connecting issuers, intermediaries and investors through our digital network we can help parties fulfil their MiKaDiv reporting obligations.”
Label co-founder David Higuera said, “MiKaDiv is raising the bar for tax operations. It’s not just about reporting, it’s about connecting data, validation, and workflows across the full custody chain, from source to submission. By bringing our capabilities together, we’re delivering that end-to-end infrastructure for the first time.”
The collaboration is designed to give institutions access to true end-to-end data lineage, eliminating manual reconciliation, enabling data validation prior to submission and delivering full auditability across the process.
The partners describe the solution as being connected from issuer through to submission, integrated rather than stitched together through manual processes, validated across the entire data lifecycle and built to accommodate future regulatory change.
Looking beyond MiKaDiv itself, the three firms say the infrastructure they have built will serve as a foundation for broader regulatory developments, including FASTER and TRACE — two additional initiatives aimed at standardising withholding tax relief procedures and improving information exchange between market participants and tax authorities.
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