The Ambassador of Andorra (Pyrenees) in the EU, Eva Descarrega, submitted the mandate of the Government to the European Commission, which agreed the negotiations on the amendment of savings income taxation agreement between the Principality and the EU.
In accordance to the terms of EU agreement, signed in 2004, Andorra obliged to apply the measures, equivalent to the ones provided by the European Union Savings Tax Directive (2003/48/EC). The Directive requires the member states to exchange of information automatically. The EU has signed similar agreements with Liechtenstein, Switzerland, Monaco and San Marino in 2004. Bilateral agreement with Andorra has entered into force on June 1, 2005.
However, due to the planned amendments in the directive on savings income taxation, the Economic and Financial Affairs Council (ECOFIN) approved the mandate for the European Commission, regarding the negotiations on the relevant amendments to the agreements of 2004 with the third countries.
The goal is to ensure that the above mentioned five countries continued to apply measures, equivalent to the updated EU directive on savings income taxation.
On July 1, Algirdas Semeta, EU Tax Commissioner, informed Jordi Cinca, the Minister for Finance of Andorra on the necessity to hold negotiations on the related matter.
The Commission intends to negotiate promptly with the third countries, as soon as receives the mandate from each relevant jurisdiction. Automatic information exchange will become the key priority in debates on savings income taxation.
See also Andorra company formation
See also Taxes in Europe
See also Taxes in Andorra VS Taxes in France
See also Taxes in Andorra VS Taxes in Spain
