Learn about Tax Tech, the critical intersection of Fintech and Regtech. Compliance by design is the holy grail - a seamless digital finance ecosystem where money flow and tax obligations are synchronized in real time. Let us talk you through how Tax Tech can function as an interface that ensures innovative Fintech solutions comply with complex, multi-jurisdictional tax requirements.

1. Tax Needs Technology

2. Kogna™ creates smarter solutions
for navigating global tax regulations
Kogna™ kogna.tech 2

3. Kogna™ kogna.tech 3
PRESS PLAY BUTTON LINK - PASSWORD: KOGNA2024
Fusing data analytics and
tax expertise for smarter
global tax solutions

4. DSC CRYPTICA 2025
Tax Needs Technology

5. Here, Now and
Soon:
Developments
Tax Types for
Multinationals
1. 2.
Common Tax Types
4.
FinTech Examples
8.
Tax for FinTech in
Practice
Tax Types for FinTech
3.
6.
Agenda
Compliance by
Design
5.
7.
TaxTech in FinTech
Key Success Factors

6. Common Tax Types

7. Direct Taxes (Taxes on Income &
Wealth)
This is a method of
collecting other taxes at
source
Levied on an individual's
wages, salaries,
investments, and other
forms of income
Levied on the profits of
a company
A tax on the assets
transferred from a
deceased person to
their heirs
A tax on the profit from
the sale of an asset
Levied on the value of
real estate or other
personal property
Personal Income
Tax
Corporate Income
Tax
Withholding Tax
Capital Gains Tax Property Tax Inheritance / Estate
Tax

8. Indirect Taxes (Taxes on Consumption &
Transactions) & Other Taxes
Value-Added Tax
(VAT) Goods and
Services Tax (GST)
Sales Tax Excise Tax
Customs Duties &
Tariffs
Payroll Taxes Stamp Duty
A tax on specific goods
(tobacco, alcohol, and
fuel). Often included in
the price of the product
Tax applied at each
stage of the supply
chain on the "value
added"
A tax imposed only at
the final point of sale to
the consumer
A tax on official
documents and legal
instruments (e.g.,
property deeds, share
transfers)
Taxes on imported
goods, used to protect
domestic industries and
generate revenue
Taxes paid by employers
and employees to fund
social security,
medicare, and
unemployment
insurance programs

9. All Taxes
Tax Reporting
The What
 Filing returns and
information forms
 Disclosure of transactions
and financial positions
 Maintaining
documentation and audit
trails
 Meeting filing deadlines
regardless of payment due
The Why
 Provides transparency to tax
authorities
 Enables income verification
and compliance monitoring
 Creates legal record of tax
positions taken
 Fulfills regulatory disclosure
requirements

10. All Taxes
Tax Reporting
The What
 Calculated tax amounts
due on income, sales,
property
 Payment deadlines and
installment requirements
 Withholding and
estimated tax payments
 Penalties and interest on
underpayments
The Why
 Fulfills legal duty to pay taxes
owed
 Transfers funds to
government for public
services
 Includes timing of payments
(quarterly, annual, other)
 Determines actual cash
outflow requirements

11. Tax Types for Multinationals

12. Common Tax Reporting Obligations for
Multinationals
Filing obligation of
a detailed GloBE
Information Return
(GIR) to insure
multinational
enterprises pay a
minimum effective
tax rate of 15%
Annual filing
obligation,
detailing key
financial and
operational metrics
for every
jurisdiction in which
they operate
Two-tiered
documentation
approach for
transfer pricing -
Master File & Local
File
US specific law
requiring foreign
financial institutions
to report
information about
accounts held by US
taxpayers to the IRS
Rules requiring
intermediaries or
taxpayers themselves
to report potentially
aggressive cross-
border tax planning
arrangements to the
authorities
An OECD standard
for the automatic,
global exchange of
financial account
information
between tax
authorities to fight
offshore tax evasion
Country-by-
Country Reporting
(CbCR)
Transfer Pricing /
Master & Local
File
Pillar Two / GloBE
Rules Reporting
Mandatory
Disclosure Rules
(MDR / DAC6)
Common
Reporting
Standard (CRS)
Foreign Account
Tax Compliance
Act FATCA

13. Tax Types for Fintech

14. Typical Tax Tasks for FinTech (1/5)
Regulatory & Compliance Management
Transaction Tax Processing
Regulatory & Compliance
Management
 Monitor evolving fintech tax
regulations across jurisdictions
 Ensure compliance with digital
service taxes (DST)
 Manage VAT/GST obligations for
digital services
 Navigate cryptocurrency and
digital asset tax rules
 Maintain licenses and
registrations in multiple
jurisdictions
Transaction Tax Processing
 Calculate withholding taxes on
cross-border payments
 Determine VAT/GST on B2B and
B2C transactions
 Handle payment processing tax
implications
 Manage marketplace facilitator
tax obligations
 Track micro-transaction
aggregation for tax purposes

15. Typical Tax Tasks for FinTech (2/5)
Transfer Pricing & International Tax
Product Tax Analysis
Transfer Pricing & International Tax
 Document intercompany service
arrangements
 Establish arm's length pricing for
IP licensing
 Manage permanent
establishment risks
 Implement BEPS compliance
measures
 Coordinate country-by-country
reporting
Product Tax Analysis
 Assess tax implications of new
fintech products
 Determine tax treatment of
lending products
 Evaluate cryptocurrency/token
tax positions
 Analyze embedded finance tax
structures
 Review payment facilitation tax
consequences

16. Typical Tax Tasks for FinTech (3/5)
Corporate Income Tax
Customer Tax Reporting
Corporate Income Tax
 Calculate R&D tax credits for
software development
 Manage stock-based
compensation tax
 Optimize tax structure for
scalability
 Handle losses and NOL
carryforwards
 Plan for exit strategies and M&A
tax
Customer Tax Reporting
 Generate 1099 forms for US
customers
 Produce interest income
statements
 Create cryptocurrency
transaction reports
 Provide tax documents for
investment products
 Support customer tax inquiries

17. Typical Tax Tasks for FinTech (4/5)
Data Management & Automation
Risk Management & Governance
Data Management & Automation
 Implement automated tax
calculation engines
 Develop real-time tax reporting
systems
 Create tax data warehouses
 Build API integrations for tax
compliance
 Maintain audit trails for digital
transactions
Risk Management & Governance
 Conduct regular tax risk
assessments
 Implement tax control
frameworks
 Manage tax audits and
controversies
 Ensure SOX compliance for tax
provisions
 Monitor regulatory changes and
impacts

18. Typical Tax Tasks for FinTech (5/5)
Strategic Tax Planning
Stakeholder Management
Strategic Tax Planning
 Optimize global tax structure
 Evaluate jurisdiction expansion
tax impacts
 Plan for regulatory sandbox
participation
 Structure partnerships and JVs
efficiently
 Assess tax implications of
funding rounds
Stakeholder Management
 Coordinate with product teams
on tax features
 Partner with compliance on
regulatory matters
 Support finance with tax
provisions
 Brief leadership on tax
implications
 Collaborate with legal on
structuring decisions

19. How About FinTech?

20. FinTech Examples
Capital gains tax
computation, loss
harvesting optimization
Premium tax reporting,
claims-realted tax
deduction tracking
Automatic tax/VAT calculation
on each transaction, real-time
invoice reporting
Withholding tax automation,
cross-border reporting, crypto
tax reporting
WealthTech, Robo-
Advisors
Automated investing
InsurTech
Digital insurance
products
Payments &
Transfers
Enable digital money
movement
Banking &
Neobanks
Digital current / saving
accounts embedded
finance

21. Here, Now and Soon

22. Digital Tax
Administration
Fully
embedded
tax engines
in digital
banks
Developments
Real-time
taxation
Governments
move toward
real-time data
submission
AI in audit
fraud
detection
Blockchain tax
“Oracle” enabled
tax compliance
“Invisible” tax
compliance
Systems file
automatically
from fintech
transaction data
SIN Electronic
Transactions Act
(ETA)
Estonia E-
Government
AI-driven tax
diagnostics
ML models
detect
misclassification
or non-
compliance in
financial data

23. Tax for FinTech in Practice

24. Tax Transaction Monitoring Cycle for FinTech (1/5)
Transaction Capture
Stage 1: Transaction Capture
 Real-time identification and
classification at point of sale
 Capture merchant codes, location,
counterparty data
 AI-powered edge case detection
(bundled products, cross-border
digital goods)
 Millisecond processing for seamless
payment flow

25. Tax Transaction Monitoring Cycle for FinTech (2/5)
Tax Calculation & Validation
Stage 2: Tax Calculation & Validation
 Dynamic tax rate application across
jurisdictions
 Multi-variable assessment (location,
product type, customer status)
 Threshold monitoring for registration
requirements
 Automated exemption certificate
validation

26. Tax Transaction Monitoring Cycle for FinTech (3/5)
Compliance & Reporting
Stage 3: Compliance & Reporting
 Continuous aggregation for periodic
filing requirements
 Real-time reporting for jurisdictions
requiring immediate remittance
 Automated audit trail generation
 Cross-border transaction
documentation

27. Tax Transaction Monitoring Cycle for FinTech (4/5)
Settlement & Remittance
Stage 4: Settlement & Remittance
 Segregated tax liability accounts
 Automated payment scheduling by
jurisdiction
 Multi-currency tax settlement
management
 Reconciliation between collected and
remitted amounts

28. Tax Transaction Monitoring Cycle for FinTech (5/5)
Post-Payment Monitoring
Stage 5: Post-Payment Monitoring
 Audit readiness and authority inquiry
response
 Refund and adjustment processing
 Compliance analytics and risk scoring
 Regulatory change impact
assessment

29. TaxTech in FinTech
Key Success Factors

30. AI-Powered TaxTech (1/3)
Generative AI Integration
Strategic Applications
 Natural language interpretation of complex tax regulations across
jurisdictions
 Auto-generation of compliance narratives and audit explanations
 Dynamic creation of tax position documentation
 Real-time translation of tax requirements for global operations
Implementation Priorities
 Focus gen AI on high-value tasks: regulatory interpretation, exception
handling
 Use for complex multi-step reasoning in transfer pricing, nexus analysis
 Generate customized reporting for different stakeholder requirements
 Create adaptive user guidance based on transaction patterns

31. Autonomous Capabilities
 Self-monitoring agents that track regulatory changes and auto-update
tax rules
 Intelligent routing agents that optimize transaction flows for tax
efficiency
 Proactive compliance agents identifying risks before filing deadlines
 Cross-functional agents coordinating between payment, reporting, and
remittance
Critical Guardrails
 Human-in-the-loop approval for material tax positions
 Explainable decision paths for all autonomous actions
 Graduated autonomy based on transaction value and risk level
 Continuous performance monitoring against accuracy thresholds
AI-Powered TaxTech (2/3)
Agentic AI Deployment

32. Architectural Strategies
 Implement caching layers for repeated regulatory queries (70% token
reduction)
 Use embedding-based retrieval vs. full context loading
 Deploy model cascading: simple models first, escalate only when
needed
 Batch similar transactions for processing efficiency
Cost Control Mechanisms
 Set dynamic token budgets by transaction value (high-value = more
tokens)
 Implement circuit breakers when cost exceeds transaction tax amount
 Use deterministic rules for standard cases, AI only for exceptions
 Monitor cost-per-decision metrics, optimize prompts continuously
AI-Powered TaxTech (3/3)
Token Cost Optimization

33. Compliance by Design

34. Compliance by Design (1/2)
Towards zero material errors & 100% on-time filing
IDEALLY – from inception. If not:
Scaling Considerations
 Progressive automation: Start with low-risk
transactions, expand gradually
 Maintain fallback systems for AI outages or cost
overruns
 Build knowledge bases to reduce repeated token
consumption
 Implement feedback loops to continuously improve
model efficiency

35. Compliance by Design (2/2)
Towards zero material errors & 100% on-time filing
Or where to start?
ROI Optimization
 Focus AI spend on transactions with highest error
risk or manual cost
 Quantify savings from reduced processing costs,
penalties, audit costs, manual review
 Track efficiency gains in processing time and
throughput
 Balance automation benefits against token and
infrastructure costs

36. TAX NEEDS TECHNOLOGY
THANK YOU
Hans Kleinsman
Kogna co-founder &
Passionate Law and Tax professional
hans@kogna.tech
+41 79 611 21 80