1
 
 
Home News & Events TAX NEWS: Tackling cross-border tax problems: Commission launches consultation on taxing dividends

TAX NEWS: Tackling cross-border tax problems: Commission launches consultation on taxing dividends

Saturday, 29 January 2011 14:41

The European Commission on 28 January launched a public consultation, calling for feedback on taxation problems that arise when dividends are distributed across borders to portfolio and individual investors in the EU.

The withholding tax regimes currently used to tax cross-border dividend payments may cause problems for the Internal Market through double taxation and discriminatory treatment.

The public consultation will be open for contributions until 30 April 2011. On the basis of the feedback, the Commission will decide how best to proceed on this issue.

Malta, an EU member state since 2004, does not charge withholding taxes on cross-border payments.  No withholding taxes are charged on dividends, interest and royalty payments whether they are made to individuals or companies registered for tax purposes in Malta, within the European Union or in a third country.

Source: http://ec.europa.eu