The American Bankers Association, the International Banking Federation and other trade organizations wrote to the Organization for Economic Co-operation and Development and European Commission today highlighting various compliance challenges related to tax withholding rules and procedures in connection with cross-border transactions during the coronavirus pandemic.
“The problem primarily arises from the challenges of moving the paper documentation needed to obtain relief at source or to process reclaim submissions, including physical documents with wet ink signatures,” the groups noted. “A related problem involves the slow-down or cessation of production of needed documents (e.g. certificates of residence) and information due to changed work arrangements in government offices and other organizations.”
To address these challenges, the groups advocated for the extensions of certain deadlines, streamlining of documentation requirements, electronic transmission and signing of documents and other accommodations to facilitate compliance.