UE approves Andorra taxation agreement

On September 20, the European Council (EC) approved the February 2016 tax agreement with Andorra. The agreement requires EU member states and Andorra to exchange information automatically.

The protocol updates the 2004 agreement that obliged Andorra to apply measures equivalent to those in the EU taxation of savings directive. It will provide local administrations with better access to information on financial accounts of residents of the other state.

At its pronouncement regarding Article 5th of the Convention, Andorra informed the EC that they will no exchange information related to a request based on illegally-obtained information.

The agreement will enter into force on January 1, 2017.