Cross-border investment and simplified taxation are a priority for the EU. However, despite the measures taken (according to the European Commission) to remove (withholding) tax barriers to cross-border investment, obstacles remain in the EU. For a discussion on these obstacles, see for example the EC tax barrier advisory group report and the EC code of conduct on withholding tax. The European Commission is opening a public consultation period in the third quarter of 2021. The consultation will be followed by a proposal for an EC Directive for introducing and implementing a new EU wide withholding tax system. This proposal is currently scheduled for the fourth quarter of 2022. It will include a system for tax administrations to exchange information and cooperate in tax matters.

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