The Directive on Faster and Safer Relief of Excess Withholding Taxes (FASTER) is designed to make withholding tax procedures in the EU safer and more efficient for cross-border investors, national tax authorities and financial intermediaries, such as banks or investment platforms. It also expected to encourage cross-border investment and help fight tax fraud.

Mihály Varga, Hungarian minister for finance, said: ‘The FASTER directive will align our withholding tax relief procedures to make sure investors don’t pay double taxes on the returns from their cross-border investments in shares and bonds.

‘This is an important step towards deepening the capital markets union, as more efficient withholding tax procedures will encourage investment on the EU’s financial markets. They will also reduce administrative burden and make it easier to spot tax fraud.’

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