EU Savings taxation directive: repealed

Savings Taxation Directive Repealed: Directive 2003/48/EC on the taxation of savings income, has been repealed on the 10^th of November by the European Council.

History of Amendments

Since 2005

The Directive that had entered into force in 2005 had enabled payments of interest made in one member state to residents of other member states to be taxed in accordance with state of tax residence laws.

The Directive has allowed since 2005, better access for tax administrations to information on private savers, requiring the automatic exchange of information between member states on private savings income.

2014-New Directive

In December 2014, the Council adopted directive 2014/107/EU amending provisions on the mandatory automatic exchange of information between tax administrations.

The scope of exchange has been extended to include dividends, interest, and other types of income.

Repeal: Aim and scope of the New Directive

Directive 2003/48/EC has been repealed following the introduction of various measures for preventing tax evasion, eliminating the overlap that has been created with other legislation.  The repeal forms part of a tax transparency package.

The new Directive is broader in scope and is to prevail in cases of overlap, implementing a single global standard developed by the OECD for the automatic exchange of information.

It will be effective as of 1^st January 2016 and member states will begin exchanging the information required by the end of September 2017.

It provides for transitional measures including provisions granting Austria more time of one year to apply the directive.