FASTER Directive getting closer
EU Finance Ministers have agreed to adopt the draft FASTER Directive aimed at harmonising the procedure for withholding and refunding tax on dividends and interest.
The draft provides for:
the regulation of a standardised digital certificate of residence issued and verifiable by all EU MemberEU Finance Ministers have agreed to adopt the draft FASTER Directive aimed at harmonising the procedure for withholding and refunding tax on dividends and interest.
States;
introduction of a Register of Certified Financial Intermediaries, the use of which should facilitate the recovery of withholding tax paid;
the introduction of new reporting standards to enhance the transparency of certain transaction chains
harmonise tax refund procedures: the introduction of a withholding exemption and/or a quick refund system, where tax should be refunded within 60 days of application (the current refund procedure assumes that refunds will be made within 6 months).
The proposed solutions may lead to an increase in the obligations for financial institutions to qualify as Certified Financial Intermediaries.
The draft will still undergo a procedure in the European Parliament and the Economic and Financial Affairs Council before it can be published in the Official Journal of the EU. According to the draft, the Directive should be implemented into national legal orders by the end of 2028 and become applicable from 2030 onwards.