14 March 2002

EP adopted Taxation of Savings Incomes Directive

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On Taxation on Savings Income Parliament called on Member States to ensure that the Directive also applied to interest paid by paying agents in their associated or dependent territories, some of which were currently tax havens.

Parliament adopted an amendment making it clear that, at the end of the 7-year transitional period allowed for Belgium, Luxembourg and Austria, those three countries should move automatically from levying a witholding tax to participating in the automatic exchange of information. No decision other than the entry into force of the directive would therefore be required.

As this Directive will be decided in consultation procedure the final decision by the Council is now being awaited.

The Commission entered into negotiations with the US and five other countries to promote the introduction of equlivant meassures in order to pave the way for adoption of the Directive before the end of the year.

(see Royo report)

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