At its meeting in January 2013, the Committee on Fiscal Affairs approved the TRACE Implementation Package, a self-contained set of agreements and forms to be used by any country that wants to implement the so-called Authorised Intermediary ("AI") system.

 

The AI system is a standardized system for claiming withholding tax relief at source on portfolio investments. It removes the adminstrative barriers  that currently affect the ability of portfolio investors to effectively claim the reduced rates of withholding tax to which they are entitled pursuant to tax treaties or to domestic law of the country of investment. It minimises administrative costs for all stakeholders and enhances the ability of both source and residence countries to ensure proper compliance with tax obligations.

 

The TRACE Group will now work on a plan for country adoption of the Authorised Intermediary system and will assist  countries considering implementing the system. Work will also continue to ensure that the reporting requirements under TRACE are aligned to those of other emerging reporting regimes (including FATCA) in order to  reduce implementation costs for all stakeholders.

 

Learn more about the TRACE Project.

 

Public Documents Relating to TRACE Work

• TRACE Implementation Package (February 2013)
  
• Public Comments on Draft Implementation Package: Possible Improvements to Procedures for Tax Relief for Cross-Border Investors (September 2010)
• Pilot Group Report on Possible Improvements to the Procedures for Tax Relief for Cross Border Investors: Implementation Package (February 2010)
• ICG Report on Possible Improvements to the Procedures for Tax Relief for Cross Border Investors (January 2009)