World Federation of Exchanges publishes blueprint for global tax reform targeting investor incentives and the removal of levies on listings, clearing and trading

The World Federation of Exchanges (WFE) has published a paper calling on governments to modernise tax systems to better incentivise productive investment, support long-term savings and improve the attractiveness of public markets. The blueprint argues for removing taxes and frictions it views as discouraging issuance, liquidity and cross-border capital flows, while simplifying compliance for investors and intermediaries. Key proposals include tax relief to encourage pension savings and retail investment accounts, alongside reduced withholding taxes on dividends. The WFE also urges the removal of levies on public listings and recommends incentives for first-time listings plus deductions for listing and IPO-related expenses, particularly to support small and medium-sized enterprises; it calls for tax neutrality between cleared and non-cleared trading to avoid undermining central clearing, and for streamlined tax reporting through automation, clearer guidance and exemptions for small investors. On cross-border investment, the paper supports harmonised reporting requirements, stronger double taxation treaties and aligned treatment of domestic and foreign investors, and it reiterates opposition to financial transaction taxes on the basis that they increase trading costs and reduce liquidity.