The European Commission has launched a roadmap that aims to introduce a common EU-wide system for withholding tax on dividend or interest payments. It will include a system for tax authorities to exchange information and cooperate with each other.
The roadmap is open for feedback until 26 October 2021. During Q4 of 2021, the Commission intends to launch a public consultation that will last for a period of 12 weeks.
The initiative aims to tackle 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. The initiative also has the specific objectives of making withholding tax relief procedures for non-resident investors more efficient and of increasing the ability of tax administrations to identify and target investors that abuse rights granted under Double Taxation Conventions.
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