EU Directive proposal on Relief of Excess Withholding Taxes process
On June 19, 2023, the European Commission proposed a new set of rules (FASTER initiative) to improve the withholding tax process within the EU between investors, financial intermediaries and Tax administrations.
The proposal introduces various elements:
A Common Electronic Tax Residence Certificate in the EU
National Registers of Certified Financial Intermediaries
New Reporting Obligations for Certified Financial Intermediaries
New withholding tax relief procedures: Relief at source and/or Quick-Refund
The draft Directive is still a proposal and is subject to the Council’s unanimity. A public consultation is launched by the European Commission inviting public input on the proposal. The timeline given is that if the Directive is approved, the proposal should come into force on 1 January 2027.