Brussels, 09/12/2015 (Agence Europe) - On 8 December, European finance ministers adopted the third directive on administrative cooperation, making the exchange of information on tax rulings automatic.
This means that with effect from 1 January 2017, the states will exchange information on cross-border rulings. The retroactivity period of the exchange has been set at five years. Under the text approved by Ecofin, tax arrangements which have been changed or renewed since 1 January 2012 will be exchanged if still in place on 1 January 2014. For the period after 1 January 2014, all rulings will be exchanged, whether or not they are still valid. It will be left up to the states to decide whether to exclude rulings granted, amended or renewed before 1 April 2016 from the retroactive exchange if these were issued to companies with an annual turnover below €40 million. This exemption will not be open to companies whose principal activities are financial or related to investments.
The Commission's role was mapped out during negotiations at the Council. It will receive only a “limited series of information”, which will allow it to monitor and assess the proper application of the exchange of information. (Original version in French by Elodie Lamer)