The new agreement marks the end of bank secrecy between San Marino and the EU. As of 2017, San Marino and EU Member States will automatically exchange information on the financial accounts of one another's residents.
Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: "This agreement between the EU and San Marino is an excellent example of the new norms for global transparency on tax issues. It reflects San Marino's determination to implement global tax good governance standards. Both the EU and San Marino have shown that concrete action can and will be taken in the fight against tax avoidance and tax evasion."
Under this deal, Member States will receive the names, addresses, tax identification numbers and dates of birth of their residents with accounts in San Marino, as well as other financial and account balance information. The same will be valid for San Marino in relation to the accounts held by its residents within any of the EU Member States. This procedure is in line with the new OECD/G20 global standard for the automatic exchange of information.
The enhanced information exchange will help tax authorities to identify tax evaders, while also acting as a deterrent for those that wish to hide income and assets abroad. It therefore encourages tax compliance. The final result should be a fairer distribution of the tax burden between citizens.
The EU signed a similar agreement with Switzerland in May this year and with Liechtenstein in October this year. Technical negotiations have just been finalised with Andorra and are at an advanced stage with Monaco.
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