European Council Approves Andorra Tax Agreement
by Ulrika Lomas, Lowtax.net, Brussels
21 September, 2016
The European Council has endorsed an agreement between the European Union (EU) and Andorra to automatically exchange information on residents' financial accounts from 2018.
The agreement was signed on February 12, and approved by the Council on September 20. It follows the granting of parliamentary approval on March 9.
Under the agreement, Andorra and EU member states will begin collecting information from January 1, 2017. From 2018, they will automatically exchange information on the names, addresses, tax identification numbers, and date of birth of residents with accounts in the other jurisdiction, along with other financial information such as account balances.
The agreement upgrades a 2004 agreement that obliged Andorra to apply measures equivalent to those in the EU directive on the taxation of savings income. The Directive was repealed in November 2015, to avoid overlap with a separate directive on the exchange of information on request.
The Council said the new agreement will "extend the automatic exchange of information on financial accounts in order to prevent taxpayers from hiding capital representing income or assets for which tax has not been paid."
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