(May 12, 2015)

On May 11, 2015 a media release announcing that the Tax Information Exchange Agreement as concluded between the United Kingdom and Monaco (the TIEA) entered into force on April 22, 2015.

Based on paragraph 1 of Article 3 of the TIEA the existing taxes which are the subject of this Agreement are:

a)   in the United Kingdom, taxes of every kind and description; and

b)   in the Principality of Monaco:

(i)      the profit tax on commercial income levied from individual persons;

(ii)     the profit tax levied from companies;

(iii)    the inheritance tax;

(iv)    the gift tax;

(v)     the transfer tax.

Paragraph 2 of Article 3 of the TIEA determines that the Agreement shall also apply to any identical taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes. It furthermore determines that the Agreement shall also apply to any substantially similar taxes imposed after the date of signature of the Agreement in addition or in place of the existing taxes. Furthermore, the taxes covered may be expanded or modified by mutual agreement of the Contracting Parties. The competent authorities of the Contracting Parties shall notify each other of any substantial changes to the taxation and related information gathering measures covered by the Agreement.

Article 5 of the TIEA contains regulations regarding the Exchange of Information upon Request. Article 6 of the TIEA contains regulations regarding the possibility to undertake Tax Examinations Abroad and Article 7 contains regulations regarding the Possibility of Declining a Request.

Based on Paragraph 2 of Article 11 of the TIEA the fact that the TIEA entered into force on April 22, 2015 means that the provisions of the Agreement shall have effect: 

a)   with respect to criminal tax matters on April 22, 2015; and

b)   with respect to all other matters described in Article 1 on April 22, 2015, but only in respect of taxable periods beginning on or after that date or, where there is no taxable period, for all charges to tax arising on or after that date.

Click here to be forwarded to the text of the TIEA as published on GOV.UK.

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