Monaco : EU Tax Information Exchange Agreement signed

On 22 February the European Union and Monaco signed a Tax Information Exchange Agreement (‘TIEA’) to combat tax evasion.

The provisions of the TIEA mirror the agreements that have already be executed by the EU with Switzerland, Liechtenstein and San Marino in the course of last year and Andorra, which signed last week (see our Bulletin 16 February 2016). The agreement follows the European Council Directive and meets international standards for the exchange of tax information, including the new OECD and G20 global standards on the automatic exchange of information.

The details provided to EU member states by Monaco will be the individual’s name, address, the tax information number and date of birth of those EU residents who hold bank accounts in Monaco. The information will start to be collected from 1 January 2017, with the first exchange of information starting the following year. From 2018, the account balance and other financial information will also be provided.

The EU will provide the same information to Monaco, on Monaco residents holding accounts in the EU.

In announcing the signature of the TIEA the government of Monaco stated that it ‘…is part of an ongoing process of transparency and the latest example of the country’s policy on fighting international tax evasion and fraud; part of a commitment to conclude agreements complying with international standards…’. Monaco will be committing resources to meet its obligations under the TIEA, as well as introducing the necessary legislation to facilitate the process.

The agreement should make it easier for businesses to operate internationally from a base in Monaco in the future.

Read more here: https://www.rosemont-int.com/news/23-02-2016-monaco-eu-tax-information-exchange-agreement-signed/

For advice on the application of this agreement please make contact with me or with your Rosemont advisor in Monaco.