EBF POSITIONh

EBF joint financial industry submission on the Proposal for a Directive on Faster and Safer Relief of Excess Withholding Taxes (FASTER)

BRUSSELS, 26 February 2024 – This response complements the joint financial industry submission on the FASTER proposal made by the Association for Financial Markets in Europe (AFME), the Association of Global Custodians (AGC), and the European Banking Federation (EBF) on 20 February 2024.

The industry welcomes efforts aimed at streamlining withholding tax procedures. The FASTER proposal was formulated with the objective of making withholding tax procedures more efficient and secure for investors, financial intermediaries, and governments regarding cross border investments. Another key driver behind the proposal is the combatting of tax fraud and abuse, in particular in the form of dividend stripping schemes such as cum ex and cum cum schemes. These efforts are strongly supported.

However, whilst the current proposal undoubtedly contains positive elements, several significant concerns remain. The new rules undoubtedly impose additional compliance burdens on financial intermediaries. Not only will they have to comply with new registration requirements, but they will also face significant new reporting obligations and due diligence requirements.

The accompanying submission reiterates the key concerns of the industry, supplementing and updating the EBF’s submission on the matter made in September 2023.

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For more information please contact:

Roger Kaiser
Head of Tax and Compliance, r.kaiser@ebf.eu

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About the EBF

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from 45 countries. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere. Website: www.ebf.eu Twitter: @EBFeu.