Unveiling the plans for an FTT backed by 11 EU countries, Taxation Commissioner Algirdas Semeta said that it was a "fair, technically sound and legally robust tax."
The proposal puts a 0.1 percent levy on bonds and shares and 0.01 percent on derivative products. Measures have also been put in place to prevent traders from circumventing the system by operating from outside the EU-11.
The use of an "issuance" principle as well as "residence" criteria means that traders operating outside the FTT-11 would also be liable to pay the tax.
"As long as you want to buy and sell European products you must pay the tax," said an EU official. This raises the thorny issue of double taxation.
The new rules will mean that if a UK trader buys or sells with a German institution, they will be hit with both the UK's domestic stamp duty and as well as the FTT.
The proposal puts a 0.1 percent levy on bonds and shares and 0.01 percent on derivative products. Measures have also been put in place to prevent traders from circumventing the system by operating from outside the EU-11.
The use of an "issuance" principle as well as "residence" criteria means that traders operating outside the FTT-11 would also be liable to pay the tax.
"As long as you want to buy and sell European products you must pay the tax," said an EU official. This raises the thorny issue of double taxation.
The new rules will mean that if a UK trader buys or sells with a German institution, they will be hit with both the UK's domestic stamp duty and as well as the FTT.
