Proposal for a European Withholding Tax framework

02/05/2022

The European Parliament adopted a resolution on 10/03/2022 on a European framework for withholding tax.

This resolution was forwarded to the Council and the Commission, in which, in particular, it “Warmly welcomes the Commission’s intention to present by the end of 2022 a proposal establishing a common and standardised system of withholding tax, with a mechanism for exchange of information and cooperation between the tax administrations of the Member States” and “takes note of the OECD’s TRACE initiative, which allows authorized intermediaries to request repayment of withholding taxes on portfolio investments; Recalls that only one Member State has implemented the TRACE initiative; encourages others to evaluate the results in terms of reducing administrative burden, tax revenue implications and the risk of fraud.”

Head of Knowledge Management Strategy and Market Infrastructure - SGSS