Monaco Strengthens Commitment to International Tax Transparency

Strengthening Global Cooperation

The Principality of Monaco has taken a significant step forward in its commitment to international tax transparency by signing and ratifying the Amending Protocol of the “Agreement between the European Community and the Principality of Monaco providing equivalent measures to those of the Council Directive 2003/48/CE”. This protocol, which came into effect on January 1st, 2017, enables automatic exchange of information between EU member states and Monaco.

Automatic Exchange of Financial Account Information

According to Minister of Foreign Affairs and Cooperation José Badia, “This signature is part of an ongoing process of transparency and a further example of international anti-fraud tax policy.” The Principality has committed to implementing the automatic exchange of financial account information, with exchanges set to begin in 2018 for information collected in 2017.

Common Reporting Standard

Monaco has also signed the Multilateral Competent Authority Agreement for the Automatic Exchange of Financial Account Information, which clarifies the Convention and will take effect at the same time. The “common reporting standard” requires tax administrations to collect information from financial institutions concerning non-resident clients and transmit it automatically to the tax authorities of their State of residence.

BEPS Measures

The Principality has also committed to implementing all compulsory BEPS (Base Erosion and Profit Shifting) measures, a move that demonstrates its willingness to follow international standards. Monaco has signed the Multilateral Convention for the Implementation of Measures on Tax Conventions to Prevent Base Erosion and Profit Shifting (the “MLI”) and has put in place a legal framework to meet the unique requirements of Action 13.

Commitment to Transparency

“We are committed to increasing transparency in tax matters, and all the measures implemented since 2009 demonstrate our commitment to this goal,” said H.S.H. Prince Albert II.

Not on EU Lists of Non-Cooperative Tax Jurisdictions

Monaco does not appear on any EU “lists” of non-cooperative tax jurisdictions, having satisfied the three criteria of transparency, fair corporate taxation, and a commitment to implementing OECD’s BEPS measures.

Further Information

For more information on Monaco’s commitment to international tax transparency, please visit our website.