Adoption of mandate for negotiations with Switzerland, Liechtenstein, Monaco, Andorra and San Marino updated savings tax agreements

Further information:

The aim is to ensure that the five countries continue to apply measures that are equivalent to the EU's Directive on the taxation of savings income [Council Directive 2003/48/EC], subject to updates in the meantime.

Background information:

Directive 2003/48/EC requires the member states to exchange information automatically so as to enable interest payments made in one member state to residents of other member states to be taxed in accordance with the laws of the state of tax residence.

Under the existing EU agreements, signed in 2004, Switzerland, Liechtenstein, Monaco, Andorra and San Marino apply equivalent measures to those provided for in the directive. Equivalent measures under the existing agreements involve either automatic exchange of information or a withholding tax on interest paid to savers resident in the EU. A proportion of the revenue accrued from the withholding tax is transferred to the country of the saver's tax residence.

The Council of the European Union adopted on 14 May 2013 a mandate for the European Commission to engage in negotiations with Switzerland, Liechtenstein, Monaco, Andorra and San Marino for amendments on existing agreement regarding the taxation of savings income.