How is the financial transaction tax going to affect translators and our clients?
Thread poster: Tom in London

Tom in London
United Kingdom
Local time: 22:20
Member (2008)
Italian to English
Feb 18, 2014

Here's a UK newspaper article about the financial transaction tax:

http://www.theguardian.com/business/2013/jan/22/eu-approves-financial-transaction-tax-eurozone

This "allows 11 states to pursue a levy on financial transactions".

I receive numerous payments in Euro and convert them to GBP.

It is not clear to me whether this "Robin Hood Tax" will only apply to trades in the financial markets or to all currency transactions.

Can anyone enlighten me?


 

Erik Freitag  Identity Verified
Germany
Local time: 23:20
Member (2006)
Dutch to German
+ ...
Nothing to fear Feb 18, 2014

Dear Tom,

AFAIK, if we are really going to see such a tax in the near future (which I regretfully doubt), it is only going to apply to stock exchange transactions, not to currency conversion. It is mainly aimed at high frequency trade.

Anyway, the planned tax rate is between 0,1 and 0,01 % - negligible compared to VAT rates in the EU (up to 27%).


 

Karen Stokes  Identity Verified
United Kingdom
Local time: 22:20
Member (2003)
French to English
Financial Times Feb 18, 2014

Hi Tom,

The FT defines the Financial Transaction Tax as follows:

"In Europe, a proposed financial transaction tax (FTT), or so-called "Tobin tax", will impose a levy on trades in stocks, bonds and derivatives. Exemptions include overnight repurchase agreements, the issue of shares and units in retail funds known as Ucits and the exchanges of stock in mergers. Eurozone states and central banks intervening in sovereign bond markets would not be liable although ordinary traders in the same markets would."

http://lexicon.ft.com/Term?term=financial-transaction-tax-FTT

Lots more detail here: http://www.ft.com/in-depth/financial-transaction-tax


 

Sheila Wilson  Identity Verified
Spain
Local time: 22:20
Member (2007)
English
+ ...
Frightening, but that's all, I think Feb 18, 2014

Thanks for the heads-up, Tom.

If you go to the EU site where it's discussed, you can click on the non-technical FAQ document, which seems to put minds at rest as far as our businesses, and pensions, are concerned.

http://ec.europa.eu/taxation_customs/taxation/other_taxes/financial_sector/index_en.htm

But they aren't really non-technical enough for me, so I'd appreciate others' input.


 


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How is the financial transaction tax going to affect translators and our clients?

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