Conclusies Ecofin: Europese richtlijn voor belasting op spaartegoeden per 2005 (en)

Savings taxation

The European Savings Tax Directive must be applied by Member States as from 1 January 2005 on condition that equivalent measures are applied from that date by certain third countries (Andorra, Liechtenstein, Monaco, San Marino, Switzerland) and that the same measures are applied by British and Dutch dependent or associated territories. By the end of June 2004 the Council must decide by unanimity whether that condition will be met.

The Council heard reports from the UK and the Netherlands on the state of play in the negotiation of saving tax agreements with UK and Dutch dependent and associated territories. The Council welcomed the accord reached on model agreements with the Crown Dependencies, positive news in regard to the UK Caribbean territories, and progress made on model agreements with the Dutch Caribbean territories. The Council invited the High Level Working Party on Taxation to finalise its work on these model agreements and the procedures to be followed to ensure that bilateral savings tax agreements will be concluded between existing and new Member States and these territories without further delay.

Taxation Commissioner Frits Bolkestein briefed Ministers on the Commission's latest contacts with Andorra, Liechtenstein, Monaco and San Marino. He reported that with the first three, further progress has been made although definitive agreements have not yet been reached. However, no progress has been made with San Marino. As for Switzerland, Mr Bolkestein noted that the Swiss Government is maintaining its position of wanting to link an agreement on savings taxation to agreements on other issues, in particular Schengen.

Speaking after the Council, Mr Bolkestein said "I made clear to Ministers that without their support and active cooperation, in particular from Italy, there would be no possibility of an agreement with San Marino.

The Council welcomed the progress made in the negotiations with certain European third countries. Recalling the agreed time-frame for applying a saving tax, the Council reiterated its full determination to come to a satisfactory and timely conclusion of the negotiations with all negotiating partners.

VAT - reduced rates

At the request of France, the Council held a brief exchange of views on the question of reduced VAT rates. The Council invited its relevant preparatory bodies to further examine this issue with a view to reverting to it at one of its forthcoming meetings.