On November 5, ISDA, the Association for Financial Markets in Europe (AFME) and the International Securities Lending Association (ISLA) submitted a paper to support the proposed European Commission (EC) Tax Omnibus as a route to simpler, more certain cross-border taxation. The focus is on withholding tax reform under the Parent-Subsidiary Directive and Interest and Royalties Directive. The proposal would abolish the 25% minimum holding requirement, introduce self-assessment, extend coverage to pension funds and include permanent establishment payments. The EC estimates €5.34 billion in annual taxpayer savings, alongside potential increases of 0.043% in EU gross domestic product, 0.07% in capital and 0.16% in wages. The associations seek a common beneficial ownership definition, clear guidance for straightforward and complex transactions, alignment with the Faster and Safer Tax Relief of Excess Withholding Taxes Directive and implementation from January 1, 2030 rather than January 1, 2037.
Documents (1) for ISDA, AFME, ISLA Submit Joint Paper on EC Tax Omnibus
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