11/02/2013 - The amount of cross border portfolio investment exceeds 35 trillion USD. To encourage growth and cross-border investment more than 3000 tax treaties around the world based on the OECD Model reduce source taxation on a reciprocal basis. In practice, however, claiming withholding tax relief under treaties and domestic law is often cumbersome, time and resource intensive for the bulk of foreign portfolio investors and thus often does not happen.
After several years of work with governments and businesses around the world and in close co-operation with the EU, the OECD has developed and approved a standardised system of effective treaty and domestic relief including a complete implementation package for countries to move forward (“TRACE”). This is a major step in streamlining processes, reducing costs, and giving investors their rights while improving tax compliance. More information can be found here. Furthermore the OECD will hold a public briefing session open to journalists covering both TRACE and latest developments on FATCA on Tuesday February 12. For more information click here. For further information please contact Philip Kerfs (Tel. +33(0)188.8.131.52.52.) or Achim Pross (Tel.: 33(0)1 184.108.40.206.).
About the OECD: The OECD is the global economic policy forum. It provides analysis and advice to its 34 member governments and other countries worldwide, promoting better policies for better lives.