13 APRIL, 2022 | TAX NEWS
A common EU-wide system for withholding tax.
On 13 April, 2022 the European Commission opened a public consultation on its initiative to introduce a common EU-wide system for withholding tax on dividend or interest payments.
The problem this initiative aims to tackle is the particularly burdensome withholding tax relief procedures for cross border investors in the securities market. The general objectives of the initiative are to ensure the proper functioning of the Capital Markets Union, to facilitate cross-border investment and to prevent tax abuse.
On 28 September 2021, the Commission had already issued a so called INCEPTION IMPACT ASSESSMENT in which it sets out possible policy options, including legislation, to achieve the before-mentioned objectives. More information about the inception impact assessment can be found in our news letter of 29 September, 2021. The purpose of an inception impact assessments is to inform citizens and stakeholders about the Commission’s plans in order to allow them to provide feedback on the intended initiative and to participate effectively in future consultation activities. Citizens and stakeholders are in particular invited to provide views on the Commission’s understanding of the problem and possible solutions and to make available any relevant information that they may have, including on possible impacts of the different options.
The public consultation closes 26 June, 2022. More detailed information on the public consultation can be found by clicking here.