Tax revenue shared by countries with withholding tax regime (2010, € million)

Currently, all MS apply automatic EoI except for Austria and Luxembourg which negotiated a transitional period. Instead, they apply a withholding tax, imposing taxes on savings interest of between 15 and 35%, retaining 25% and transferring 75% to the country of residence of the account holder. The transitional period will end when Switzerland, Andorra, San Marino, Monaco and Liechtenstein meet inter-national information exchange practices. However, Luxembourg announced recently that it will introduce automatic EoI in 2015. Moreover, the European Council, including the leaders of Luxembourg and Austria, called on 22 May for the adoption in 2013 of the modified EUSD, however in the light of new agreements with the five neighbours.
Under agreements signed in 2004, Switzerland, Liechtenstein, Monaco, Andorra and San Marino impose a 35% withholding tax on interest paid to savers resident in thEU e EU instead of exchanging bank data.4 Moreover, Guernsey, Jersey, the Isle of Man and seven Caribbean territories apply a withholding tax under bilateral agreements concluded with each MS. A proportion of the revenue obtained from the withholding tax is transferred to the country of the saver’s tax residence.