Tax & Withholding
A distribution is rarely the same number for every holder.
What it does
Paying a distribution pro rata to every address is almost always wrong. What a holder actually receives depends on their jurisdiction, their status and any treaty position — so the gross entitlement is an on-chain fact while the net payment is a function of off-chain ones. This module is designed to hold each holder's tax position, apply the correct withholding at the moment of distribution, pay the net amount, and retain the evidence needed at year end. Without it, distributions cannot lawfully be paid in several jurisdictions. In development.
How it works
Tax & Withholding sits between entitlement and payment. Asset Lifecycle Management establishes who is owed what, this module determines what each holder actually receives, and Investor Reporting documents it.
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Step 1 of 3: Entitle. The gross distribution per holder is determined from the register at the snapshot.
Key capabilities
Withholding by holder position
The rate follows the holder's jurisdiction and status rather than a single blanket assumption.
Gross entitlement, net payment
The on-chain entitlement and the amount actually paid are kept distinct, because they are different numbers.
Evidence retained per payment
Each deduction keeps the basis it was calculated on, which is what year end requires.
Year-end reporting data
The figures needed for holder tax documents fall out of the distribution rather than being reconstructed.