EBF position on the Direct Taxation Omnibus proposal

Brussels, 27 October 2026 – The European Banking Federation (EBF) welcomes the European Commission’s Taxation Omnibus proposal as a positive step towards a simpler and more competitive EU tax framework, while calling for further improvements to ensure meaningful simplification for the banking sector.

The EBF particularly welcomes the exemption of withholding tax, and measures to improve aspects of the EU’s anti-tax avoidance rules and streamline tax dispute resolution.

However, further changes are needed to ensure that the package delivers meaningful simplification for financial institutions. We call for a significantly shorter implementation timeline for the proposed changes to the Parent-Subsidiary and Interest and Royalties Directives, and for existing compliance and liability concerns for certified financial intermediaries under FASTER to be addressed before the exemptions are integrated. We also call for safeguards against additional burdens arising from the proposed Interest and Royalties Directive safeguard clause, including an explicit exclusion for listed bonds and/or the possibility for intermediaries to rely on payee self-certifications.

Finally, the EBF stresses that the Pillar Two simplification agenda remains unfinished. Greater alignment in implementation across Member States, a genuine reduction in compliance requirements and a dedicated dispute resolution mechanism are needed to address remaining concerns and ensure that the framework supports EU competitiveness.

Read the full document here

For more information:

Roger Kaiser, Head of Tax and Compliance – r.kaiser@ebf.eu

Giulia Verde, Policy Adviser/Executive Coordinator, Tax and Compliance – g.verde@ebf.eu

Anna Maria Nowak, Policy Advisor – Tax and Compliance – am.nowak@ebf.eu

About the EBF:

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The federation is committed to a thriving European economy that is underpinned by a stable, secure, and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.