The Impact of Financial Transaction Tax on Companies - A Discussion

41 Pages Posted: 3 Jun 2015

See all articles by Carmel Said Formosa

Carmel Said Formosa

Vienna University of Economics and Business

Date Written: 2015


In February 2013, eleven Member States agreed to adopt the Commissions’ Proposal for a Council Directive implementing enhanced cooperation in the area of financial transaction tax, COM (2013)71 final. This article reviews three thematic areas frequently discussed by practitioners and academia alike on the impact that the Proposal could have on companies operating within participating Member States. This includes the impact on capital and related costs, business strategy and compliance considerations. I ask the question whether the unintentional repercussions could be mitigated by making adjustments to the current Proposal including the expansion of exemptions and the adoption of an implementation framework that takes inspiration from the Value Added Tax System that is already implemented across Member States.

Keywords: FinancialTransaction Tax, Transaction Taxes, Cost of Capital, Tax Burden, Compliance and Administration

Suggested Citation

Formosa, Carmel Said, The Impact of Financial Transaction Tax on Companies - A Discussion (2015). WU International Taxation Research Paper Series No. 2015 - 17, Available at SSRN: or

Carmel Said Formosa (Contact Author)

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien 1020

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