Luxembourg and Malta are still falling short on countering aggressive tax planning, while other European Union countries should upgrade their tax systems in a number of ways, the European Commission said in a series of economic policy recommendations issued Wednesday.
Luxembourg has “taken some steps to fight aggressive tax planning,” but “a particular point of concern is the absence of withholding taxes, or equivalent measures on interest and royalty payments made to low or zero-tax jurisdictions,” other than those on the EU tax haven blacklist, the commission said.
Malta doesn’t levy withholding taxes on outbound interest, dividends and royalty ...