The EU has adopted the revised Savings Tax Directive, strengthening the efforts to combat cross-border tax evasion by exchanging information on savings income. The revised text extends the scope of the Directive more entities and types of income including investment funds, pensions, and innovative financial instruments.
Luxembourg has given its support to the revised Directive, thereby allowing the revision to go through. Luxembourg attaches significance to the European Commission’s intention to continue negotiating with European third countries to establish equivalent measures. Agreements with countries such as San Marino and Liechtenstein are essential to prevent avoidance of the provisions of the Directive by routing transactions through these non-EU states.
