Political agreement on a proposed EU withholding tax (FASTER) Directive was achieved on 14 May 2024. FASTER aims to streamline withholding tax relief for cross-border investors and enhance data access for tax authorities to combat fraud. Member States will be required to implement either a relief at source system or a quick refund system for withholding tax claims. They will also be required to establish automated processes to issue digital tax residence certificates. Extensive reporting obligations, requiring detailed data elements, high data volumes and short timeframes, will also be required. With an effective date of 1 January 2030, the European Commission must finalise details, while the financial industry prepares to implement the new framework across all participating Member States.
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Political agreement on a proposed EU withholding tax (FASTER) Directive was achieved on 14 May 2024. FASTER aims to streamline withholding tax relief for cross-border investors and enhance data access for tax authorities to combat fraud. Member States will be required to implement either a relief at source system or a quick refund system for withholding tax claims. They will also be required to establish automated processes to issue digital tax residence certificates. Extensive reporting obligations, requiring detailed data elements, high data volumes and short timeframes, will also be required. With an effective date of 1 January 2030, the European Commission must finalise details, while the financial industry prepares to implement the new framework across all participating Member States.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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