Details

  • Service: Tax, International Corporate Tax
  • Type: Regulatory update
  • Date: 9/28/2011

European Commission - Proposal for financial transaction tax 

The European Commission today presented a proposal for a financial transaction tax, to be applied in the 27 Member States of the European Union, effective 1 January 2014. 

The tax would be levied on all transactions on financial instruments between financial institutions when at least one party to the transaction is located in the EU.


The exchange of shares and bonds would be taxed at a rate of 0.1%, and derivative contracts would be taxed at a rate of 0.01%.


For text of the proposal and a study of different tax instruments: EU financial transactions tax proposal


It is anticipated that this tax could approximately raise €57 billion every year. Revenues from the tax would be shared between the EU and the EU Member States, with part of the tax to be used as an EU-own resource which would partly reduce national contributions. It would be left to EU Member States to decide whether to increase the part of the revenues by taxing financial transactions at a higher rate.


What’s next?

The proposal will be discussed by all Member States in the EU's Council of Ministers, and the Commission will present it to the G20 Summit in November.




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