On September 29, 2021 The European Commission opened the first phase of a public consultation: “Withholding taxes - new EU system to avoid double taxation”. During this phase European Commission searches for input for a so-called inception impact assessment. The period during which input can be given for the inception impact assessment runs from September 28, 2021 until October 26, 2021 (midnight Brussels time).
About this initiative
Cross-border investment and simplified taxation are a priority for the EU. Despite the measures taken to remove tax barriers to cross-border investment, obstacles remain in the EU.
This initiative 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.
Inception impact assessment
The aim of such an assessment is to analyse in more detail the issue to be addressed, whether action should be taken at EU-level and the potential economic, social and environmental effects of the different solutions outlined.
More information on the public consultation “Withholding taxes - new EU system to avoid double taxation” as well as the link via which can give input can be found here.
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