Luxembourg confirms its position on automatic exchange of information
At the Ecofin meeting on 10 December 2013 the savings taxation was again on the agenda. During the meeting the new Finance Minister Pierre Gramegna confirmed Luxembourg's commitment to move forward towards automatic exchange of information and has highlighted concrete actions illustrating the determination of Luxembourg:
(1) for the fiscal year 2015 Luxembourg will apply automatic exchange of information on interest payments within the EU
(2) on 3 December 2013 Luxembourg has signed the initiative recently launched by the G5 countries supporting the development within the OECD of the automatic exchange of information between tax authorities as a single global standard
(3) a draft legislation authorizing the ratification of the OECD Convention on Mutual Administrative Assistance in Tax Matters will be sent to Parliament before end of the year
Concerning the extension of the scope of the savings directive, the minister regrets that the negotiations conducted with the third countries have not yet yielded results which would suffice to meet the circumstances defined by the European Council for the adoption of the revised savings directive.
The Minister stressed the importance of moving forward in these negotiations in order to ensure:
- That the same standard is applied by all major financial centers (level playing field) in order to avoid capital flight out of the EU's capacity to invest in order to bolster the economy and growth
- A move that is in line with the OECD, in order to ensure the creation and implementation of an international standard.
Press release by the Ministry of Finance