Three specialist technology providers have joined forces to tackle one of the financial industry’s most pressing regulatory challenges.
TaxTec, Proxymity and Label have unveiled a collaboration they describe as the first truly end-to-end solution for MiKaDiv compliance, integrating data origination, validation and regulatory reporting into a single, connected infrastructure spanning the full custody chain.
MiKaDiv marks a fundamental departure from how withholding tax has traditionally been managed. Europe’s first regulation to mandate end-to-end data connectivity across issuer, intermediary and investor layers, it requires market participants to validate information across multiple points in the custody chain and produce structured, schema-driven reporting outputs.
The direction of travel is clear: the industry is moving away from fragmented processes, manual reconciliation and point-in-time reporting, and towards continuously auditable, connected data infrastructure.
That transition is what the three-way partnership is designed to fill. They claim most institutions today operate with data siloed across custodians, brokers and internal systems, reconciliation that demands significant human intervention, and reporting pipelines that remain detached from the upstream data processes feeding them.
The partners warn that firms relying on narrow, reporting-only approaches to MiKaDiv will find themselves managing risk rather than eliminating it — because without connected data sources, standardised workflows and full-chain validation, compliant reporting remains out of reach.
Each partner brings a defined role to the solution. Proxymity anchors the upstream layer, providing direct connectivity to issuer and investor data to establish a trusted data foundation. TaxTec’s platform sits in the middle, aggregating and normalising data across custodians and intermediaries, orchestrating workflows, and maintaining embedded governance controls and a full audit trail throughout the custody chain. Label closes the loop at the reporting layer, generating MiKaDiv-compliant schema outputs and submission-ready reports that align with evolving regulatory requirements.
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.”
For institutions adopting the solution, the practical benefits are significant. The combined platform enables true end-to-end data lineage, removes the need for manual reconciliation across disparate systems, allows data to be validated before submission rather than at the point of failure, and delivers the kind of full auditability and transparency that regulators increasingly expect. Crucially, the solution has been designed with future-proofing in mind — built to accommodate the next wave of regulatory change rather than simply addressing today’s requirements.
MiKaDiv is, in many respects, the opening act of a broader regulatory shift across Europe towards greater transparency, standardisation and digitalisation in tax operations, they said. With that in mind, the three firms position their combined infrastructure as a platform with reach beyond MiKaDiv alone, offering a foundation that can support compliance with FASTER and TRACE and others .
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