Procedures for granting withholding tax relief on cross-border investment are a major and long-standing barrier to the free movement of capital within the EU.
The Action Plan for fair and simple taxation supporting the recovery strategy proposes to introduce a common, standardised EU-wide system for withholding tax relief at source. In the context of the Capital Market Union, this issue is also addressed by the Capital Markets Union for people and businesses-new action plan.
The JRC takes active role in the economic impact assessment of this Action plan by analysing the effects of withholding taxes (and relief procedures) on cross-border investment and using the general equilibrium model CORTAX.