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Summary of Treaty


GENERAL DATA
Official Title Agreement between the European Community and the Principality of Andorra providing for measures equivalent to those laid down in Council Directive 2003/48/EC on taxation of savings income in the form of interest payments
Type of Agreement Bilateral
Place of Signature Brussels
Date of Signature 15/11/2004
Date of Entry Into Force 01/06/2005
Duration Indefinite
Objective of Agreement To ensure that the Principality of Andorra adopts measures equivalent to those to be applied within the European Community to permit effective taxation of savings income in the form of interest payments.
Remarks The measures involve withholding tax at a predetermined rate with revenue sharing, a voluntary procedure for the beneficiary based on the optional supply of information to his or her tax authority in place of withholding of tax at source by the Andorran paying agent, a mechanism for information exchange on request in the event of tax fraud or equivalent offences concerning interest, and a revision clause enabling the parties to consult each other every three years or at the request of one of the parties in order to improve the technical operation of the agreement and allow for international change in this domain. Savings income in the form of interest payments made in the Principality of Andorra to beneficial owners who are identified as residents of a Member State of the European Union will be subject to a withholding tax at source levied by the paying agent in the Principality of Andorra. With a view to applying Article 12 of the said Agreement, the Principality of Andorra undertakes to introduce into its legislation during the first year of the application of the Agreement, the concept of the crime of tax fraud, consisting at least of the use of documents which are false, falsified or recognised as being incorrect in terms of their content, with intent to deceive the tax authorities in the field of taxation of savings income. Complemented by the “Memorandum of Understanding between the European Community, the Kingdom of Belgium, the Czech Republic, the Kingdom of Denmark, the Federal Republic of Germany, the Republic of Estonia, the Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Grand Duchy of Luxembourg, the Republic of Hungary, the Republic of Malta, the Kingdom of the Netherlands, the Republic of Austria, the Republic of Poland, the Portuguese Republic, the Republic of Slovenia, the Slovak Republic, the Republic of Finland, the Kingdom of Sweden, the United Kingdom of Great Britain and Northern Ireland and the Principality of Andorra” (OJ L 359 of 04/12/2004, p.46). The signatories to this Memorandum of Understanding consider that the Agreement and this Memorandum of Understanding are an acceptable agreement protecting the legitimate interests of the parties. Consequently, they will apply in good faith the measures agreed and refrain from taking any unilateral action which might jeopardise this Agreement without reasonable cause.
OJ Reference L359, 04/12/2004, p. 33
Depositary Council of the European Union
Contracting Parties European Community, Andorra
Authentic Texts Catalan, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Polish, Portuguese, Slovakian, Slovenian, Spanish, Swedish
Subject Matters Andorra
EC agreement
Taxation
interest
savings
tax on income
tax system
Clause(s)
Suspension Article 14 Agreement
Suspension Article 16 Agreement
Territorial application Article 17 Convention
Management Consultation (Article 13)
EU PARTICIPATION
Conclusion Decision Council Decision of 2 November 2004 concerning the signature of the Agreement between the European Community and the Principality of Andorra providing for measures equivalent to those laid down in Council Directive 2003/48/EC on taxation of savings income in the form of interest payments and the approval and signature of the accompanying Memorandum of Understanding; OJ L 359 of 04/12/2004, p.32
Competence Exclusive
Legal Basis Treaty EC: Article 94


Last Update :   21/12/2006