EU Lawmakers Back Bloc Withholding Tax on Dividends, Royalties

The European Commission should propose a bloc-level withholding tax to stop profit-shifting, EU lawmakers said Thursday.

The European Parliament in a 625-38 vote with 28 abstentions backed an opinion calling for a Commission proposal that would “including a possible minimum effective tax rate” for royalties, dividends, and interest payments. The Commission and Parliament, however, don’t have the power to set tax rates.

Instead, the Commission—the European Union’s executive arm—would propose minimum common EU standards for withholding-tax related information to be provided to tax authorities, and would push for greater exchange of that information, EU Economy Commissioner Paolo Gentiloni said during ...