2013/0045(CNS)

Implementing enhanced cooperation in the area of financial transaction tax (FTT)

Awaiting final decision

Activites

  • #3506
  • 2016/12/06 Council Meeting
  • #3356
  • 2014/12/09 Council Meeting
    • 3356 summary
  • #3343
  • 2014/11/07 Council Meeting
    • 3343 summary
  • #3310
  • 2014/05/06 Council Meeting
  • 2013/07/03 Results of vote in Parliament
    • Results of vote in Parliament
    • T7-0312/2013 summary
  • 2013/07/02 Debate in Parliament
  • 2013/06/24 Committee report tabled for plenary, 1st reading/single reading
    • A7-0230/2013 summary
    • BUDG JENSEN Anne E. ALDE
    • ECON ECON/7/11981 PODIMATA Anni S&D
    • EMPL
    • JURI
  • 2013/06/18 Vote in committee, 1st reading/single reading
  • 2013/03/12 Committee referral announced in Parliament, 1st reading/single reading
  • 2013/02/14 Legislative proposal published
    • COM(2013)0071 summary
    • DG {u'url': u'http://ec.europa.eu/info/departments/taxation-and-customs-union_en', u'title': u'Taxation and Customs Union'}, ŠEMETA Algirdas

Documents

AmendmentsDossier
189 2013/0045(CNS) Implementing enhanced cooperation in the area of financial transaction tax (FTT)
2013/03/13 BUDG 4 amendments...
source: PE-506.353
2013/03/19 ECON, ECON 20 amendments...
source: PE-507.928
2013/04/10 BUDG 14 amendments...
source: PE-508.244
2013/04/30 ECON 151 amendments...
source: PE-507.999

History

(these mark the time of scraping, not the official date of the change)

2018-04-26
activities/6/council added Economic and Financial Affairs ECOFIN
activities/6/docs added
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    http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=SMPL&ROWSPP=25&RESULTSET=1&NRROWS=500&DOC_LANCD=EN&ORDERBY=DOC_DATE+DESC&CONTENTS=3310*&MEET_DATE=06/05/2014
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    text
    • The Council discussed a proposal aimed at introducing a financial transaction tax (FTT) in 11 Member States - Austria, Belgium, Estonia, France, Germany, Greece, Italy, Portugal, Slovakia, Slovenia and Spain - through the "enhanced cooperation" procedure. The Commission's proposal now under discussion was tabled in February 2013. It requires unanimous agreement of the participants, while other Member States can also participate in deliberations.

      At the ECOFIN Council Meeting of 6 May 2014, the Ministers of ten participating Member States released a Joint Statement which, essentially, contained the following commitments of these Member States:

      • they aim to create a harmonised taxation regime to tax financial transactions, work with non-participating Member States and finalize viable solutions by the end of 2014;
      • FTT should be implemented progressively, taxation of transactions in shares and some of the derivatives being the first step (at the latest by the end of 2015) and other steps are to be taken when economic impact is duly considered;
      • Member States that already have further-reaching national FTT would be able to maintain it.

      On this basis, the Italian Presidency has continued negotiations to discuss possible solutions to the open issues. The Italian Presidency has therefore directed its main efforts on: (i) defining the scope of the transactions that would constitute the scope of the FTT at the first phase, and (ii) seeking an agreement on the basic principle of taxation that would apply for the whole structure of the FTT.

      Measurable progress has been made towards convergence of views of the Member States on the scope of the FTT. It noted that the participating member states agree that transactions in shares of companies listed on stock exchanges should be subject to the FTT. However, further work is required on derivatives to be subject to the FTT.

      Taxation of transactions in derivatives: most participating Member States are in favour of taxing, as a first step of the FTT implementation, transactions in derivatives which are based on the underlying that fall under the scope of the FTT (i.e. the transactions in the underlying of which are subject to FTT - e.g. equity derivatives - where transactions in that equity will be within the scope of the FTT).

      Some Member States have concerns with regard to the taxation of interest rate derivatives, at least in the first phase of the FTT. Other Member States have also expressed a preference to tax transactions in certain types of credit default swaps, and some other delegations, however, want to exempt equity derivatives.

      Application of "issuance" and "residence" principles to define FTT: a group of participating Member States prefers the approach followed by the Commission proposal, i.e. application of the residence principle, supplemented by the issuance principle as last resort. However, a number of other participating Member States are in favour of the application of the issuance principle: according to this principle, the tax would be levied depending on the place of the establishment of the issuer.

      In order to reach a compromise, the Presidency explored the possibility to combine the application of the issuance principle with a revenue allocation mechanism to ensure a distribution of FTT revenues among participating Member States taking into consideration also other parameters (residence principle, combination of residence and issuance, or economic drivers).

      The Presidency proposed three possible methods for the allocation of revenues among Participating Member States. However, delegations could not agree on the solution of revenue distribution that would be acceptable to all of them.

      The Presidency indicated that work would be intensified to enable an agreement in the near future, with the aim of implementing a first phase of the FTT from 1 January 2016.

    type
    Debate in Council
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    3343
activities/7/meeting_id added 3343
activities/7/text deleted
  • The Council discussed a proposal aimed at introducing a financial transaction tax (FTT) in 11 Member States - Austria, Belgium, Estonia, France, Germany, Greece, Italy, Portugal, Slovakia, Slovenia and Spain - through the "enhanced cooperation" procedure. The Commission's proposal now under discussion was tabled in February 2013. It requires unanimous agreement of the participants, while other Member States can also participate in deliberations.

    At the ECOFIN Council Meeting of 6 May 2014, the Ministers of ten participating Member States released a Joint Statement which, essentially, contained the following commitments of these Member States:

    • they aim to create a harmonised taxation regime to tax financial transactions, work with non-participating Member States and finalize viable solutions by the end of 2014;
    • FTT should be implemented progressively, taxation of transactions in shares and some of the derivatives being the first step (at the latest by the end of 2015) and other steps are to be taken when economic impact is duly considered;
    • Member States that already have further-reaching national FTT would be able to maintain it.

    On this basis, the Italian Presidency has continued negotiations to discuss possible solutions to the open issues. The Italian Presidency has therefore directed its main efforts on: (i) defining the scope of the transactions that would constitute the scope of the FTT at the first phase, and (ii) seeking an agreement on the basic principle of taxation that would apply for the whole structure of the FTT.

    Measurable progress has been made towards convergence of views of the Member States on the scope of the FTT. It noted that the participating member states agree that transactions in shares of companies listed on stock exchanges should be subject to the FTT. However, further work is required on derivatives to be subject to the FTT.

    Taxation of transactions in derivatives: most participating Member States are in favour of taxing, as a first step of the FTT implementation, transactions in derivatives which are based on the underlying that fall under the scope of the FTT (i.e. the transactions in the underlying of which are subject to FTT - e.g. equity derivatives - where transactions in that equity will be within the scope of the FTT).

    Some Member States have concerns with regard to the taxation of interest rate derivatives, at least in the first phase of the FTT. Other Member States have also expressed a preference to tax transactions in certain types of credit default swaps, and some other delegations, however, want to exempt equity derivatives.

    Application of "issuance" and "residence" principles to define FTT: a group of participating Member States prefers the approach followed by the Commission proposal, i.e. application of the residence principle, supplemented by the issuance principle as last resort. However, a number of other participating Member States are in favour of the application of the issuance principle: according to this principle, the tax would be levied depending on the place of the establishment of the issuer.

    In order to reach a compromise, the Presidency explored the possibility to combine the application of the issuance principle with a revenue allocation mechanism to ensure a distribution of FTT revenues among participating Member States taking into consideration also other parameters (residence principle, combination of residence and issuance, or economic drivers).

    The Presidency proposed three possible methods for the allocation of revenues among Participating Member States. However, delegations could not agree on the solution of revenue distribution that would be acceptable to all of them.

    The Presidency indicated that work would be intensified to enable an agreement in the near future, with the aim of implementing a first phase of the FTT from 1 January 2016.

activities/7/type changed
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activities/8/council added Economic and Financial Affairs ECOFIN
activities/8/docs added
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    http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=SMPL&ROWSPP=25&RESULTSET=1&NRROWS=500&DOC_LANCD=EN&ORDERBY=DOC_DATE+DESC&CONTENTS=3356*&MEET_DATE=09/12/2014
    text
    • The Council discussed developments concerning a proposal aimed at introducing a financial transaction tax (FTT) in 11 Member States through enhanced cooperation.

      Given the importance that both participating and non-participating Member States attach to the project of introducing FTT in the participating Member States in a harmonised way, the Italian Presidency has continuously maintained this file high on its agenda and conducted work within the Council in a transparent manner.

      The Presidency is of the view that the importance of the FTT project remains evident and that further discussions should continue to be driven towards reaching an overall compromise on the FTT. This would be an unprecedented positive step by a group of eleven EU Member States, committed towards a common goal in that area.

      Further work: the Presidency considers that the following elements should be taken into consideration:

      ·         Regarding the scope of the FTT, while progress has been made towards convergence of views of the Member States on the scope of the FTT for transactions in shares, the scope of the FTT for derivatives as well as the taxation principles for both transactions in shares and derivatives remain key outstanding issues. Concerning transactions in shares, the Presidency has worked on the categories of financial products to fall within the definition of shares. Participating Member States highlighted the opportunity that transactions in shares of publically listed companies will be covered by the FTT. A solution has been proposed with regard to transactions in non listed shares in order to address the concerns of some Member States about their taxation and to allow the other Member States to tax them within the framework of the Directive.

      ·         Some further work is required on the scope of transactions in financial derivatives. The Presidency has focused its work on identifying the categories of derivatives subject to FTT in the first stage. Although a compromise has not been found yet, better understanding of some critical issues has been achieved. With regard to taxation principles underlying the future FTT (residence and/or issuance principles), further reflections on their application will be necessary.

      ·         Future work on the FTT compromise text will also have to cover particular aspects of a possible collection mechanism of the FTT. Participating Member States have continuously confirmed their agreement on the need to proceed with a progressive implementation of the FTT. This would allow them, before broadening the scope of the FTT, to assess the real economic impact of this tax on the markets.

      In conclusion, the Presidency encouraged the incoming Presidency to pursue work in a transparent and inclusive manner, while giving the file political attention, as appropriate, in order to facilitate the participating Member States to reach an agreement on taxation of the financial transactions within the expected deadlines.

    type
    Debate in Council
    title
    3356
activities/8/meeting_id added 3356
activities/8/text deleted
  • The Council discussed developments concerning a proposal aimed at introducing a financial transaction tax (FTT) in 11 Member States through enhanced cooperation.

    Given the importance that both participating and non-participating Member States attach to the project of introducing FTT in the participating Member States in a harmonised way, the Italian Presidency has continuously maintained this file high on its agenda and conducted work within the Council in a transparent manner.

    The Presidency is of the view that the importance of the FTT project remains evident and that further discussions should continue to be driven towards reaching an overall compromise on the FTT. This would be an unprecedented positive step by a group of eleven EU Member States, committed towards a common goal in that area.

    Further work: the Presidency considers that the following elements should be taken into consideration:

    ·         Regarding the scope of the FTT, while progress has been made towards convergence of views of the Member States on the scope of the FTT for transactions in shares, the scope of the FTT for derivatives as well as the taxation principles for both transactions in shares and derivatives remain key outstanding issues. Concerning transactions in shares, the Presidency has worked on the categories of financial products to fall within the definition of shares. Participating Member States highlighted the opportunity that transactions in shares of publically listed companies will be covered by the FTT. A solution has been proposed with regard to transactions in non listed shares in order to address the concerns of some Member States about their taxation and to allow the other Member States to tax them within the framework of the Directive.

    ·         Some further work is required on the scope of transactions in financial derivatives. The Presidency has focused its work on identifying the categories of derivatives subject to FTT in the first stage. Although a compromise has not been found yet, better understanding of some critical issues has been achieved. With regard to taxation principles underlying the future FTT (residence and/or issuance principles), further reflections on their application will be necessary.

    ·         Future work on the FTT compromise text will also have to cover particular aspects of a possible collection mechanism of the FTT. Participating Member States have continuously confirmed their agreement on the need to proceed with a progressive implementation of the FTT. This would allow them, before broadening the scope of the FTT, to assess the real economic impact of this tax on the markets.

    In conclusion, the Presidency encouraged the incoming Presidency to pursue work in a transparent and inclusive manner, while giving the file political attention, as appropriate, in order to facilitate the participating Member States to reach an agreement on taxation of the financial transactions within the expected deadlines.

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