• Service: Tax, Global Mobility Services, International Tax
  • Type: Regulatory update
  • Date: 5/7/2014

EU - Update on financial transaction tax 

May 7: The Council of the EU (ECOFIN) on 6 May 2014 addressed a proposal for a directive on a financial transaction tax in 11 EU Member States, as proposed by the EU Commission in February 2014. Although the details of the proposal are still under discussion, it appears that participating EU Member States would like to implement a scaled-down version of the original proposal as from 2016.

Notwithstanding opposition to the tax proposal by non-participating EU Member States, the 11 participating EU Member States appear to be determined to implement the financial transaction tax as from 2016. The scope of the tax would be narrower than as originally proposed and, initially, would only apply to shares and certain derivatives.

At yesterday’s session, the participating EU Member States were urged to keep other EU Member States informed of any developments, since this tax would affect both participating and non-participating EU Member States.

Read a May 2014 report [PDF 174 KB] prepared by KPMG’s EU Tax Centre: EU Council progress on EU Financial Transaction Tax

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