Finance Ministers update heads of government on tax progress: overview of all tax files
The EU Finance Ministers have published a document on recent progress on tax files, with the purpose of updating EU’s Heads of Governments.
The document contains a helpful overview of the tax files that the Romanian Presidency has worked on in the past six months. Of particular interest, the document describes what progress has been made on CCTB, the Council’s work on finding a common position to international digital tax negotiations, VAT definitive regime and more. Read more
Finance Ministers discuss financial transaction tax, Germany hopeful agreement can be reached this autumn and revises list tax havens list
The EU’s Finance Ministers received an update on recent progress among the 10 enhanced cooperating EU Member States on a financial transaction tax (FTT) at their 14 June ECOFIN meeting.
At the meeting, Germany’s Finance Minister Olaf Scholz stated that a limited agreement on FTT would be possible this year’s autumn, and for the tax to become effective in 2021.
The main challenge remains that especially smaller countries would only see timid yields from the FTT, which would make implementing and enforcing it not worth the effort.
Therefore, according to a leaked document France and Germany now propose that those countries that would gain more than EUR 100 million from the tax would compensate by allocating a “top-up” to guarantee that even the lowest yielding countries would get EUR 20 million income from the tax.
As a reminder, the new FTT which is based on the French model would apply to purchases of shares on listed companies headquartered in the EU at a rate of 0.2% or more. This scope is narrower than the initial 2011 FTT proposal, which also included derivatives and other financial instruments. The tax would only apply to companies with a market capitalisation above EUR 1 billion. Moreover, IPOs, market making and intraday trading would also be exempt.
Dominica removed from EU blacklist of ‘tax havens’
EU Member States have agreed to remove Dominica from the EU’s blacklist of non-cooperative jurisdictions, or ‘tax havens’.
Dominica ratified the OECD Multilateral Convention on Mutual Administrative Assistance in tax matters and signed the Multilateral Competent Authority Agreement in April this year. As a result, Dominica will start exchanging information with EU Member States from December 2019.
Following Dominica’s withdrawal, the list now consists of Belize, Fiji, Marshall Islands, Oman, United Arab Emirates, Vanuatu, American Samoa, Guam, Samoa, Trinidad and Tobago and the United States Virgin Islands.