It comes in the week before the G8 in Northern Ireland, where the EU, in tandem with the UK hosts, will push for the global introduction of a similar system, which will help developing countries to get more of the tax revenue they need and deserve.
Today's steps will build on existing exchange of non-residents' savings details, which is due to be strengthened by the end of this year and on measures due to come into force on 1 January 2015 on the exchange of information on income from employment, directors' fees, life insurance, pensions and property.
Completing the system for preventing cross-border tax evasion by individuals is a key part of the Commission's Action Plan on tax, put forward at the end of 2012. That Action Plan also dealt with corporate tax avoidance.
Alongside the Action Plan, the Commission set out Recommendations to Member States on dealing with tax havens and on closing the legal technicalities and loopholes which some companies exploit to avoid paying their fair share.
The clampdown on tax evasion within the EU also accompanies the mandate Member States have agreed – after two years of hold-ups - to give to the Commission to negotiate stronger savings tax agreements with Switzerland, San Marino, Andorra, Lichtenstein and Monaco.
EU Taxation Commissioner Algirdas Šemeta said: "With today's proposal, Member States will be better equipped to assess and collect the taxes they are due, while the EU will be well positioned to push for higher standards of tax good governance globally. It will be another powerful weapon in our arsenal to lead a strong attack against tax evasion."