Date: 27-May-2024Category: Not ApplicableState: Union GovernmentCountry: Europe
Council Decision (EU) 2024/1489 of 21 May 2024 authorising the opening of negotiations for the amendment of the Agreements concerning the automatic exchange of financial account information to improve international tax compliance between the European Union and the Swiss Confederation, the Principality of Liechtenstein, the Principality of Andorra, the Principality of Monaco and the Republic of San Marino, respectively
Council Decision (EU) 2024/1489 authorizes the European Commission to open negotiations to amend existing agreements with the Swiss Confederation, the Principality of Liechtenstein, the Principality of Andorra, the Principality of Monaco, and the Republic of San Marino. These agreements concern the automatic exchange of financial account information to improve international tax compliance.
Key Changes
The decision is driven by important changes approved within the OECD regarding the Common Reporting Standard (CRS) on 26 August 2022, scheduled for implementation from 1 January 2026.
These changes to the CRS are being implemented within the EU through an amendment to Council Directive 2011/16/EU.
The existing agreements with the specified countries contain provisions for bilateral consultations and potential amendments via protocols or new agreements following significant OECD-level changes to the CRS.
The goal is to ensure the continued cooperation in the automatic exchange of financial account information beyond 1 January 2026.
Impact Analysis
EU Member States
Action Items: Monitor the progress of the negotiations and prepare for the implementation of the amended agreements and related changes to Directive 2011/16/EU.
Swiss Confederation, Principality of Liechtenstein, Principality of Andorra, Principality of Monaco, Republic of San Marino
Action Items: Engage in negotiations with the EU through their representatives and prepare for the implementation of the amended agreements.
Financial Institutions
Action Items: Stay informed about the specific changes to the CRS and prepare to update reporting systems and procedures accordingly. Engage with industry associations and regulatory bodies for guidance.
European Commission
Action Items: Conduct negotiations in accordance with the negotiating directives, consult with the Council Working Party on Tax Questions, and report regularly to the Council on the progress of the negotiations.
Key Entities Referenced
European Commission: The executive branch of the European Union, responsible for proposing legislation, implementing decisions, and managing the EU's day-to-day operations. In this case, it is authorized to conduct negotiations on behalf of the EU.
Council of the European Union: A body composed of government ministers from each EU member state. It is responsible for adopting EU laws and coordinating EU policies. In this case, it authorizes the Commission to open negotiations.
Swiss Confederation: One of the third countries involved in the agreements concerning the automatic exchange of financial account information with the EU.
Principality of Liechtenstein: One of the third countries involved in the agreements concerning the automatic exchange of financial account information with the EU.
Principality of Andorra: One of the third countries involved in the agreements concerning the automatic exchange of financial account information with the EU.
Principality of Monaco: One of the third countries involved in the agreements concerning the automatic exchange of financial account information with the EU.
Republic of San Marino: One of the third countries involved in the agreements concerning the automatic exchange of financial account information with the EU.
OECD: Organisation for Economic Co-operation and Development. The OECD developed the Common Reporting Standard (CRS).
Common Reporting Standard (CRS): An internationally agreed standard for the automatic exchange of financial account information, developed by the OECD.
Council Directive 2011/16/EU: EU directive on administrative cooperation in the field of taxation. It implements the CRS within the Union for exchanges between Member States.
Official Journal EN
of the European Union L series
2024/1489 27.5.2024
COUNCIL DECISION (EU) 2024/1489
of 21 May 2024
authorising the opening of negotiations for the amendment of the Agreements concerning the
automatic exchange of financial account information to improve international tax compliance
between the European Union and the Swiss Confederation, the Principality of Liechtenstein, the
Principality of Andorra, the Principality of Monaco and the Republic of San Marino, respectively
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 115, in conjunction with
Article 218(3) and (4) thereof,
Having regard to the recommendation from the European Commission,
Whereas:
(1) The Agreements concerning the automatic exchange of financial account information concluded between the Union
and the Swiss Confederation (1), the Principality of Liechtenstein (2), the Principality of Andorra (3), the Principality of
Monaco (4) and the Republic of San Marino (5), respectively (the ‘Agreements’), provide the legal basis for the
reciprocal automatic exchange of financial account information between each Member State and each of those third
countries, in accordance with the internationally agreed Common Reporting Standard (CRS) developed by the
Organisation for Economic Cooperation and Development (OECD). The Agreements are aimed at improving
international tax compliance while assisting tax authorities in preventing and tackling tax fraud and evasion.
(2) The CRS is implemented within the Union for exchanges between the Member States under Council Directive
2011/16/EU (6).
(3) Important changes to the CRS were approved within the OECD on 26 August 2022. Those changes are to be
implemented from 1 January 2026.
(4) The implementation of those changes within the Union has been provided for by means of an amendment to
Directive 2011/16/EU.
(5) Each of the Agreements contains identical provisions providing for bilateral formal consultations between the
Contracting Parties to take place when an important change is adopted at OECD level to any of the elements of the
CRS and following which it is possible to amend that agreement by means of a protocol or a new agreement
between the Contracting Parties.
(6) It is in the interest of the Union and its Member States that the cooperation in the field of automatic exchange of
financial account information between tax authorities which is provided for by the Agreements continue without
interruption beyond 1 January 2026.
(7) To this aim, negotiations should be opened with a view to amending the Agreements concerning the automatic
exchange of financial account information to improve international tax compliance between the Union and the
Swiss Confederation, the Principality of Liechtenstein, the Principality of Andorra, the Principality of Monaco and the
Republic of San Marino, respectively,
(1) Agreement between the European Union and the Swiss Confederation on the automatic exchange of financial account information
to improve international tax compliance (OJ L 385, 29.12.2004, p. 30).
(2) Agreement between the European Union and the Principality of Liechtenstein on the automatic exchange of financial account
information to improve international tax compliance (OJ L 379, 24.12.2004, p. 84).
(3) Agreement between the European Union and the Principality of Andorra on the automatic exchange of financial account
information to improve international tax compliance (OJ L 359, 4.12.2004, p. 33).
(4) Agreement between the European Union and the Principality of Monaco on the exchange of financial account information to
improve international tax compliance in accordance with the Standard for Automatic Exchange of Financial Account Information in
Tax Matters developed by the Organisation for Economic Cooperation and Development (OECD) (OJ L 19, 21.1.2005, p. 55).
(5) Agreement between the European Union and the Republic of San Marino on the automatic exchange of financial account
information to improve international tax compliance (OJ L 381, 28.12.2004, p. 33).
(6) Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing
Directive 77/799/EEC (OJ L 64, 11.3.2011, p. 1).
ELI: http://data.europa.eu/eli/dec/2024/1489/oj 1/2EN
OJ L, 27.5.2024
HAS ADOPTED THIS DECISION:
Article 1
The Commission is hereby authorised to open negotiations, on behalf of the Union, to amend the Agreements concerning
the automatic exchange of financial account information to improve international tax compliance between the European
Union and the Swiss Confederation, the Principality of Liechtenstein, the Principality of Andorra, the Principality of Monaco
and the Republic of San Marino, respectively.
Article 2
1. The Commission shall conduct the negotiations in accordance with the negotiating directives set out in the addendum
to this Decision. Those directives shall be revised and further developed, as appropriate, depending on the evolution of the
negotiations.
2. The negotiations shall be conducted in close consultation with the Council Working Party on Tax Questions, which is
hereby designated as the special committee within the meaning of Article 218(4) of the Treaty on the Functioning of the
European Union.
3. The Commission shall report to and consult the special committee on a regular basis. Whenever requested by the
Council, the Commission shall report to the Council on the conduct and the outcome of the negotiations, including in
writing.
Article 3
This Decision is addressed to the Commission.
Done at Brussels, 21 May 2024.
For the Council
The President
H. LAHBIB
2/2 ELI: http://data.europa.eu/eli/dec/2024/1489/oj