New EU withholding tax procedure rules agreed by Member States

Table of contents

• Taxation: Council agrees on new rules for withholding tax procedures (FASTER)
• Double taxation
• Common tax residence certificate
• Fast-track procedures
• Standardised reporting for financial intermediaries
• Background and next steps

Article summary

MLex: EU governments, on 4 May 2024, agreed new rules, known as the FASTER initiative, that aim to make withholding tax procedures safer and more efficient for cross-border investors, national tax authorities and financial entities. The initiative will introduce a common EU digital tax residence certificate, provide Member States with two fast-track relief and refund procedures, and set a standardised reporting mechanism for banks and investment platforms. The Council of the EU acted as sole legislator, but will consult EU lawmakers again after making changes to the proposed Directive. It will enter into force after adoption by the Council and publication in the EU's Official Journal. Statement follows. The agreed Directive is attached.