The obstacles with the withholding tax refund processes pose a major barrier to cross-border investments in the EU and to build the CMU. In order to boost the economic growth in the EU, PensionsEurope calls on the Member States and the European Commission to remove all the withholding tax barriers to cross-border investments.
PensionsEurope emphasizes that relief-at-source systems for the withholding tax are the most effective way to promote cross border investment and therefore calls upon the Commission to study the possibilities for a Directive to facilitate this, for amongst others pension funds, in the internal market. Meanwhile, PensionsEurope welcomes the initiative of the Commission to establish relief at source, quick and standardized refund procedures through best practices and a code of conduct. You can find PensionsEurope’s position paper and proposals on the Code of Conduct for withholding tax here.