- FASTER Directive Overview: The Council has adopted the FASTER directive to streamline and enhance the safety of withholding tax procedures across the EU, aiming to prevent double taxation on cross-border investments in dividends and interest, thereby encouraging investment and reducing tax fraud.
- Introduction of Digital Tax Residence Certificate: The directive will implement a common EU digital tax residence certificate (eTRC) to simplify the process for investors seeking withholding tax relief. Member states will automate the issuance of these certificates and establish two fast-track procedures for quicker tax relief, including a relief-at-source system and a quick refund mechanism.
- Standardized Reporting and Certification: The directive mandates standardized reporting for financial intermediaries, facilitating better detection of tax fraud by national authorities. It also establishes a European Certified Financial Intermediary Portal for registration and oversight, ensuring compliance with the new rules, which member states must transpose into national legislation by December 31, 2028, with enforcement starting January 1, 2030.
Source consilium.europa.eu
