The funds industry is undergoing significant changes. From the Digital Operational Resilience Act (DORA), which will take effect in January 2025, to the FASTER directives, currently at the forefront of discussions among the EU council, there is a wealth of information to process.How will these changes affect your tax reclaim activities, and what should you know? In this article, we provide an overview of the latest updates on the FASTER Directive and offer insights on ensuring your tax reclaim processes align with DORA requirements.
In June 2024, we published an article on our website outlining the latest insights into the FASTER Directive and its implications for the funds industry. On December 10, 2024, the EU Council officially adopted the FASTER Directive, representing a major milestone in the digitalization and harmonization of withholding tax reclaims across the EU. This directive seeks to simplify and modernize the processes for reclaiming withholding taxes among member states. The implementation phase is expected to be completed by 2029, with the directive coming into effect on January 1, 2030. Detailed information about the directive can be found here.
DORA's purpose is to enhance the cybersecurity and operational resilience of financial entities, ensuring their ability to withstand and recover from significant disruptions. The regulation's coverage includes ICT third-party risk management and oversight of critical third-party providers, among others. Regarding these topics, your tax reclaim service provider must comply with DORA. Your accesses to the tax reclaim service provider's portal—if any— must be individual and cannot be shared within your organization.
Being the first tax reclaim service provider compliant with DORA, your organization is not required to take any action if you work with Globe Refund. For more information about FASTER, DORA or tax reclaim, we invite you to contact us.
Our work focuses on providing outsourced withholding tax recovery services to safeguard your investments from over-taxation and save your time from burdensome processes.
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