Sarah French of TaxTec speaks with Justin Lawson about the parallels between CRS implementation and the forthcoming FASTER initiative, and what the shift towards digital-first tax relief means for financial intermediaries across Europe
The European Commission proposed the FASTER initiative in 2023. Could you outline what FASTER aims to achieve?
FASTER’s ambition is quite clear — it aims to replace the fragmented, paper-heavy refund procedures we currently navigate with a faster, digital, and more transparent model for cross-border investors obtaining withholding tax relief within the EU. At its core, FASTER introduces two key mechanisms: a harmonised relief-at-source system for eligible investors, and an EU-wide Digital Tax Residency Certificate, or eTRC, to streamline documentation and authentication. If implemented successfully, we could see a significant reduction in the double taxation and administrative delays that make current withholding tax reclaim processes so complex and inefficient.
From reclaim execution to reclaim enablement – Asset Servicing Times