Corporate Taxation

European Commission proposes FASTER Directive to optimise the process of withholding tax relief

On 19 June 2023, the European Commission published a proposal for a Council Directive “On Faster and Safer Relief of Excess Withholding Taxes”, or simply the “FASTER Directive”. This Directive aims to make withholding tax procedures in the EU more efficient and to combat tax fraud and abuse.

Member States must ratify the necessary national laws to comply with the Directive by 31 December 2026 and apply those provisions from 1 January 2027.

Read the full analysis from Taxand member firm Flick Gocke Schaumburg here.

Featured previously, our colleagues at ATOZ Tax Advisers, Taxand Luxembourg, have also shared their analysis of the Directive proposal. If you missed their update, you can read more here.