The European Commission is proposing to make withholding tax procedures in the EU more efficient.
A common EU digital tax residence certificate is being proposed to make withholding tax relief procedures faster and more efficient. Member States currently rely on paper-based procedures.
The Commission is proposing to complement the existing standard refund procedure with a two fast-track procedures: a “relief at source” procedure and a “quick refund” system.
A standardized reporting obligation is being proposed to provide national tax administrations with the necessary tools to check eligibility for the reduced rate and to detect potential abuse.