After the EU ECOFIN Meeting of November 10, 2015 the Council of the EU issued a press release announcing that on that same date the Council repealed Directive 2003/48/EC on taxation of savings income in the form of interest payments.

According to the press release the repeal of the directive follows a strengthening of measures to prevent tax evasion. A significant overlap had developed with other legislation in this field, and the repeal eliminates that overlap.

The press release furthermore states: “Directive 2003/48/EC required the automatic exchange of information between member states on private savings income. This enabled interest payments made in one member state to residents of other member states to be taxed in accordance with the laws of the state of tax residence. The directive was last amended in March 2014 to reflect changes to savings products and developments in investor behaviour since it came into force in 2005.

In December 2014, the Council adopted directive 2014/107/EU amending provisions on the mandatory automatic exchange of information between tax administrations. It extended the scope of that exchange to include interest, dividends and other types of income. Directive 2014/107/EU will enter into force on 1 January 2016.

Directive 2014/107/EU is generally broader in scope than directive 2003/48/EC. It provides that in cases of overlap of scope, directive 2014/107/EU is to prevail.”

It is furthermore stated that EU agreements with Andorra, Liechtenstein, Monaco, San Marino and Switzerland, initially based on directive 2003/48/EC, are currently being revised to be aligned with directive 2014/107/EU and the new global standard.

According to the press release the repeal was enacted by a directive adopted by the Council, which also provides for transitional measures. According to the press release these transitional measures concern in particular a derogation granted to Austria under directive 2014/107/EU, allowing it to apply that directive one year later than other member states.

Several documents are attached to the press release. A.o. a Draft version of the directive repealing the directive on the taxation of savings income.

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