Savings Directive repealed

The directive (2003/48/EC), which since 2005 has allowed tax administrations better access to information on private savers, was repealed on 10 November 2015 by the EU Council. Repeal of the directive follows a strengthening of measures to prevent tax evasion. A significant overlap had developed with other legislation in this field, and the repeal eliminates that […]

Written By ACT Team

On November 12, 2015
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The directive (2003/48/EC), which since 2005 has allowed tax administrations better access to information on private savers, was repealed on 10 November 2015 by the EU Council. Repeal of the directive follows a strengthening of measures to prevent tax evasion. A significant overlap had developed with other legislation in this field, and the repeal eliminates that overlap.

The directive required the automatic exchange of information between member states on private savings income. This enabled interest payments made in one member state to residents of other member states to be taxed in accordance with the laws of the state of tax residence. In December 2014, the Council adopted directive 2014/107/EU amending provisions on the mandatory automatic exchange of information between tax administrations. It extended the scope of that exchange to include interest, dividends and other types of income. Directive 2014/107/EU will enter into force on 1 January 2016.  The new directive will be broader in scope than the Savings Directive.

The new directive implements a single global standard developed by the OECD for the automatic exchange of information. The OECD standard was endorsed by the G20 finance ministers in September 2014.

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected].