23rd January 2013

The EU launches enhanced cooperation on the financial transaction tax

Plans to introduce the financial transaction tax (FTT) were first presented in June 2012. In December 2012, the European Parliament gave its consent to the proposal of the EC. Finally, on 22 January 2013 the EU Council adopted a decision authorising eleven Member States to go ahead with enhanced cooperation on a common system of financial transaction tax (FTT). The eleven member states wishing to introduce a financial transaction tax through enhanced cooperation are Belgium, Germany, Estonia, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia.

The Commission's original proposal involved a harmonised minimum 0.1% tax rate for transactions in all types of financial instruments except derivatives (0.01% rate). The aim was for the financial industry, which many consider to be under-taxed, to make a fair contribution to tax revenues, whilst also discouraging transactions that do not enhance the efficiency of financial markets.

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Members of the American Chamber of Commerce in the Czech Republic