Turks And Caicos Commits To EU Savings Tax Directive

by Amanda Banks, for LawAndTax-News.com, London

29 January 2004

In a statement released on Tuesday, the Chief Minister of the Turks and Caicos Islands, Michael Misick, announced that the jurisdiction has committed to implementing the European Union's Savings Tax Directive, subject to the creation of a level playing field on the issue for all offshore and onshore jurisdictions.

Mr Misick announced yesterday that:

"The Government of the Turks and Caicos Islands in recognising its relationship with the United Kingdom and in the spirit of co-operation and partnership and in a desire to foster the development of standards in matters of international finance has decided to implement legislation to introduce the provisions of the EU Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments."

However, he went on to add that:

"The Government's policy is that it will comply with Article 17 (2) (ii) of the Directive and will apply a withholding tax during the transitional period, which commences on 1 January 2005 on the same terms and the same conditions that apply to the Swiss Confederation, the Principality of Lichtenstein, the Republic of San Marino, the Principality of Monaco and the Principality of Andorra and in accordance with an agreement in substantially the same terms entered into by them with the European Community concerning the EU Council Directive on taxation of savings income in the form of interest payments."

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