The European Commission has adopted a recommendation that outlines how EU Member States could make it easier for investors resident in EU Member States to claim withholding tax relief on dividends, interest and other securities income received from other Member States.

It also suggests measures to eliminate the tax barriers that financial institutions face in their securities investment activities while at the same time protecting tax revenues against errors or fraud. The recommendation is designed to provide guidance to Member States in how to ensure that procedures to obtain tax relief do not hinder the functioning of the Single Market. Current Member States procedures to verify hat investors may forego the reliefs or even decide not to invest acroclaims for withholding tax reliefs are often complicated and time consuming tss-border.

More information is available at the European Commission website.