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Today’s Top Headlines

Andorra Submits Savings Tax Negotiating Mandate

by Ulrika Lomas,, Brussels

15 October 2013

Andorra's Ambassador to the European Union (EU), Eva Descarrega, has submitted a mandate from the Government to the European Commission, agreeing to negotiate a revision to the savings tax agreement between the Principality of Andorra and the Community.

Under the terms of the EU accord signed in 2004, Andorra pledges to apply measures equivalent to those provided for in the EU's directive on the taxation of savings income (2003/48/EC), requiring member states to exchange information automatically. The EU signed similar agreements with Switzerland, Liechtenstein, Monaco, and San Marino in 2004. The bilateral treaty with Andorra entered into force on June 1, 2005.

However, in view of planned changes to the savings tax directive, aimed at improving its effectiveness and closing certain loopholes, the Economic and Financial Affairs Council (Ecofin) approved a mandate for the European Commission to negotiate corresponding amendments to the 2004 treaties with third countries. The aim is to ensure that the five countries in question continue to apply measures that are equivalent to the EU's updated directive. EU Tax Commissioner Algirdas Šemeta informed Andorran Finance Minister Jordi Cinca of the Commission's negotiating mandate on July 1.

The Commission aims to swiftly engage in open and ambitious talks with third countries, once it receives a mandate from each of the jurisdictions concerned. The automatic exchange of information will remain a key priority during the course of the savings tax discussions.

TAGS: compliance | Finance | tax | European Commission | tax compliance | tax avoidance | Liechtenstein | Monaco | agreements | Switzerland | individual income tax | European Union (EU) | Andorra | San Marino | Europe | Tax | Tax Evasion

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