Implementing enhanced cooperation in the area of financial transaction tax (FTT)
01020304
With the European Parliament.
Last active 06 Dec 2016
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What this bill does
In plain terms: what it changes and who it affects.
This proposal creates a common financial transaction tax in participating EU countries for many trades by financial institutions.
Who it affects
It affects financial institutions trading securities, derivatives, structured products and fund units in or linked to participating Member States. Ordinary household and business activities such as insurance, mortgages, consumer credit and payment services are largely excluded.
Core of the proposal
- Taxes broad financial transactions before netting, including securities trades, derivatives, exchanges and repurchase agreements.
- Uses residence rules, supplemented by issuance rules, to catch transactions linked to participating Member States.
- Sets minimum rates of 0.1% for non-derivative transactions and 0.01% for derivatives.
- Requires monthly returns, prompt payment, recordkeeping, joint liability and anti-abuse rules.
Key provisions
- Takes effect
- The Directive enters into force on the twentieth day after Official Journal publication and applies nationally from 1 January 2014.
- Transitional law
- Participating Member States must adopt and publish implementing measures by 30 September 2013 before applying them from 1 January 2014.
Latest update
26 May 2026The most recent development in this bill's progress.
Moved to European Parliament
Documents
5 recentSourcesOEIL