The Commission’s initiative to simplify EU law in direct taxation, with its focus on reducing administrative burdens, eliminating outdated/overlapping rules, and improving consistency and application across Member States, is urgently needed to ensure the EU's competitiveness.

To reduce red tape, safeguard neutrality, and accelerate the SIU, benefiting European savers and businesses, EFAMA is calling on the Commission and Member States to:

- Preserve funds tax neutrality and avoid sector-specific levies (e.g. FTT/DST/CORE)

- Simplify tax rules for funds' cross-border investments (e.g. ATAD CFC, interest limitation)

- Align policy options with the DAC recast and FASTER

- Simplify PSD/IRD procedures and remove participation thresholds for intra-EU payments.

EFAMA stands ready to assist TAXUD and Member States with technical input and operational expertise as the impact assessment is finalised and proposals are prepared for June.