Automatic exchange of tax information within the EU

22.01.2016

A revised version of the Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation entered into force in the EU since January 1, 2016.

The Council Directive 2014/107/EU of 9 December 2014 synchronizes the EU rules with the global Standard for Automatic Exchange of Financial Account Information in Tax Matters developed by the OECD.

The new order obliges banks and other financial institutions of the EU member states to inform their country’s tax authorities annually about the accounts of their clients who are residents of the other EU states. The accounts of resident customers in local banks are exempt from this rule.

The exchange covers both individuals and legal entities – tax residents of the EU countries. The so-called “passive non-financial entities” are mentioned separately (it is referred to companies which do not run active business and are not financial institutions. The main factor is their passive income (dividends, interest, rentals etc.) or assets on which the passive income accrued is not less than 50 percent of the total income or assets). If such company has a beneficial owner who is the EU tax resident, the information on its account is subject to automatic exchange as well.

The information to be exchanged includes:

  • name, surname (for individuals) or company name (for legal entities),
  • address,
  • taxpayer’s number,
  • date and place of birth,
  • information about the person operating an account (for companies),
  • account number,
  • name of a financial institution,
  • account balance as on 31 December of the respective year,
  • total amount of interest, dividends, income from financial assets credited to an account during the year.

By the end of 2015 all the EU countries were to oblige their financial institutions statutorily to collect and transfer to tax authorities the information on the EU residents’ accounts. The financial institutions, for their part, must identify residents of the other EU countries among their customers.

The first automatic information exchange is to take place in 2017 (with exception to Austria, which will implement the automatic exchange in 2018).

It should also be noted that the EU countries will participate in automatic exchange not only between themselves, but also with other countries, which signed the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information. At the end of January 2016 the number of such countries is 79. The countries that have committed to automatic exchange of information and the starting dates of this exchange are listed below.

JURISDICTION FROM WHICH THE COMPETENT AUTHORITY IS FROM INTENDED FIRST INFORMATION EXCHANGE BY:
1. ALBANIA September 2018
2. ANDORRA September 2018
3. ANGUILLA September 2017
4. ANTIGUA AND BARBUDA September 2018
5. ARGENTINA September 2017
6. ARUBA September 2018
7. AUSTRALIA September 2018
8. AUSTRIA September 2018
9. BARBADOS September 2017
10. BELGIUM September 2017
11. BELIZE September 2018
12. BERMUDA September 2017
13. BRITISH VIRGIN ISLANDS September 2017
14. BULGARIA September 2017
15. CANADA September 2018
16. CAYMAN ISLANDS September 2017
17. CHILE September 2018
18. CHINA (PEOPLE'S REPUBLIC OF) September 2018
19. COLOMBIA September 2017
20. COOK ISLANDS September 2018
21. COSTA RICA September 2018
22. CROATIA September 2017
23. CURASAO September 2017
24. CYPRUS September 2017
25. CZECH REPUBLIC September 2017
26. DENMARK September 2017
27. ESTONIA September 2017
28. FAROE ISLANDS September 2017
29. FINLAND September 2017
30. FRANCE September 2017
31. GERMANY September 2017
32. GHANA September 2018
33. GIBRALTAR September 2017
34. GREECE September 2017
35. GREENLAND September 2017
36. GRENADA September 2018
37. GUERNSEY September 2017
38. HUNGARY September 2017
39. ICELAND September 2017
40. INDIA September 2017
41. INDONESIA September 2018
42. IRELAND September 2017
43. ISLE OF MAN September 2017
44. ITALY September 2017
45. JAPAN September 2018
46. JERSEY September 2017
47. KOREA September 2017
48. LATVIA September 2017
49. LIECHTENSTEIN September 2017
50. LITHUANIA September 2017
51. LUXEMBOURG September 2017
52. MALAYSIA September 2018
53. MALTA September 2017
54. MARSHALL ISLANDS September 2018
55. MAURITIUS September 2017
56. MEXICO September 2017
57. MONACO September 2018
58. MONTSERRAT September 2017
59. NETHERLANDS September 2017
60. NEW ZEALAND September 2018
61. NIUE September 2017
62. NORWAY September 2017
63. POLAND September 2017
64. PORTUGAL September 2017
65. ROMANIA September 2017
66. SAINT LUCIA September 2018
67. SAINT VINCENT AND THE GRENADINES September 2018
68. SAMOA September 2018
69. SAN MARINO September 2017
70. SEYCHELLES September 2017
71. SINT MAARTEN September 2018
72. SLOVAK REPUBLIC September 2017
73. SLOVENIA September 2017
74. SOUTH AFRICA September 2017
75. SPAIN September 2017
76. SWEDEN September 2017
77. SWITZERLAND September 2018
78. TURKS & CAICOS ISLANDS September 2017
79. UNITED KINGDOM September 2017

Tags: exchange of tax information

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