Proposal for a Council Decision on the conclusion of the Agreement between the European Community and the Principality of Andorra providing for measures equivalent to those laid down in Council Directive 2003/48/EC on taxation of savings income in the form of interest payments
Date: 2004-08-17
Institutions: European Commission
Subjects: Andorra, administrative cooperation, double taxation, ratification of an agreement, savings, tax avoidance, tax convention, tax on investment income, tax system

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 17.8.2004 
COM(2004) 564 final 

2004/0192 (CNS) 

Proposal for a 

COUNCIL DECISION 

concerning the signature of the Agreement between the European Community and the 
Principality of Andorra providing for measures equivalent to those laid down in Council 
Directive 2003/48/EC on taxation of savings income in the form of interest payments and  
the approval and signature of the accompanying Memorandum of Understanding 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Agreement between the European Community and the 
Principality of Andorra providing for measures equivalent to those laid down in Council 
Directive 2003/48/EC  
on taxation of savings income in the form of interest payments  

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

By  its  decision  of  16  October  2001,  the  Council  authorised  the  Commission  to  negotiate 
appropriate  agreements  with  Switzerland, 
the  United  States  of  America,  Andorra, 
Liechtenstein,  Monaco  and  San  Marino  to  ensure  that  these  countries  adopt  measures 
equivalent to those to be applied within the Community to ensure effective taxation of savings 
income  in  the  form  of  interest  payments.  The  Commission  was  instructed  to  conduct  these 
negotiations in close conjunction with the Presidency of the Council, and in close and regular 
consultation with the High-level Working Party set up by Coreper Decision of 13 June 20011 
and appointed by the Council as a special committee to assist the Commission in that task. 

Following  the  decision  of  16 October 2001,  the  Commission  wrote  to  the  above  non-EU 
countries  to  request  the  opening  of  negotiations  even  though  it  was  only  after  the  ECOFIN 
Council’s approval of a text of the draft directive, on 13 December 2001, that the negotiations 
could really begin. A large number of meetings at both political and technical level have since 
been  held.  In  accordance  with  the  Council  decision  of  16 October 2001,  the  Commission 
conducted the negotiations in close conjunction with successive Presidencies of the Council. 
It  made  regular  oral  progress  reports  to  the  Council  and  Parliament,  and  presented  a 
communication on the negotiations with third countries on taxation of savings income to the 
ECOFIN Council on 3 December 2002.2 

On 3 June 2003 the Council stated that the draft agreement with Switzerland submitted by the 
Commission on 28 May 2003 constituted the final offer for an agreement between the EU and 
Switzerland. The Council minutes also state: 

“The four elements of this agreement relating to savings taxation also constitute the 
basis  for  agreements  between  the  European  Union  and  Liechtenstein,  Andorra, 
Monaco and San Marino…”. 

On 21 January 2003 the Council identified these four elements as: 

Voluntary disclosure of information 

Retention  and  withholding:  Switzerland  will  apply  the  same  rates  of  retention  and 

Revenue  sharing:  Switzerland  will  share  the  revenue  of  the  retention  tax  and  will 

“- 
withholding as Belgium, Luxembourg and Austria … 
- 
accept the 75/25 division applied within the Community … 
- 
Review  clause  stating  that  “The  Contracting  Parties  shall  consult  with  each  other  at  least 
every three years or at the request of either Contracting Party with a view to examining and – 
if deemed necessary by the Contracting Parties – improving the technical functioning of the 
Agreement.  In  any  event  when  Belgium,  Luxembourg  and  Austria  change  from  withholding 
tax to automatic exchange of information in accordance with the Directive, the Contracting 
Parties shall consult each other in order to examine whether the  changes to the  Agreement 
are necessary taking into account international developments. 
Switzerland grants exchange of information on request for criminal or civil cases of fraud or 
similar misbehaviour on the part of taxpayers…”. 

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2 

OJ C 183, 29.6.2001, p. 1. 
SEC (2002) 1287 final, 27.11.2002. 

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The Agreement with Andorra, which includes these four elements, is now being presented to 
the  Council  for  signature  and  conclusion.  It  is  accompanied  by  a  Memorandum  of 
Understanding between the European Community and its Member States, of the one part, and 
the  Principality  of  Andorra  of  the  other  part.  In  accordance  with  the  conclusions  of  the 
ECOFIN  Council  of  21 January 2003,  the  Memorandum  of  Understanding  confirms  that 
within  the  transition  period  provided  for  by  Council  Directive  2003/48/EC  of  3 June 2003,3 
the  European  Community  will  enter  into  discussions  with  other  important  financial  centres 
with  a  view  to  promoting  adoption  by  those  jurisdictions  of  measures  equivalent  to  those 
applied by the Community. The Memorandum of Understanding also provides that the same 
measures  will  be  implemented  in  good  faith  and  that  the  Parties  will  not  act  unilaterally  to 
undermine this arrangement without due cause. Should any significant difference between the 
scope  of  Council  Directive  2003/48/EC  and  that  of  the  Agreement  be  discovered,  the 
Contracting Parties will immediately enter into discussions  with a view to ensuring that the 
equivalent  nature  of  the  measures  provided  for  by  the  Agreement  is  maintained.  The 
Memorandum of Understanding also contains a commitment from the Principality of Andorra 
concerning  the  introduction  in  its  legislation  of  the  concept  of  the  crime  of  tax  fraud  and 
provides that the Principality of Andorra and each Member State of the European Community 
wishing to do so will enter into bilateral negotiations to define the administrative procedure 
for  exchange  of  information.  The  Memorandum  of  Understanding  states  that  the  Parties 
solemnly declare that the signature of the Agreement on taxation of savings and the opening 
of negotiations for a monetary agreement are a significant advance in cooperation between the 
Principality  of  Andorra  and  the  European  Union.  Consequently,  and  in  parallel  with  the 
bilateral  negotiations  to  be  conducted  on  the  exchange  of  information  procedure,  the 
Principality  of  Andorra  and  each  Member  State  of  the  European  Community  will  hold 
consultations  to  define  a  broader  framework  for  economic  and  tax  cooperation.  These 
consultations will be undertaken in a spirit of cooperation which take account of the efforts 
made  by  the  Principality  of  Andorra  in  approximating  its  legalisation  in  the  tax  field, 
formalised by the signing of this Agreement. In particular these consultations may lead to the 
implementation of: 

– 

– 

bilateral  economic  cooperation  programmes  to  promote  integration  of  the 
Andorran economy into the European economy; 

bilateral  cooperation  in  the  tax  field  to  determine  the  conditions  under  which 
withholding tax on income derived from financial services and products levied 
in the Member States can be eliminated or reduced. 

The  Commission  considers  that  the  text  of  the  Agreement  is  in  accordance  with  the 
negotiating  directives  adopted  by  the  Council  on  16 October 2001.  The  Council  gave  its 
political agreement to the texts of both the Agreement and the accompanying Memorandum 
of Understanding on 11 May this year. 

The Commission proposes that the Council approve the attached proposals: 

– 

for  a  decision  on  the  signature  of  the  Agreement  providing  for  measures 
equivalent to those laid down in Council Directive 2003/48/EC of 3 June 2003 
on  taxation  of  savings  income  in  the  form  of  interest  payments,  and  on  the 

3 

OJ L 157, 26.6.2003, p. 38. 

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approval and signature of the accompanying Memorandum of Understanding, 
and  

– 

for a decision on the conclusion of the above Agreement under the procedures 
set by Article 300 of the Treaty establishing the European Community.  

Article 300(2) of the Treaty establishing the European Community stipulates that the Council 
shall act unanimously when the Agreement covers a field for which unanimity is required for 
the  adoption  of  internal  rules.  As  the  internal  rules  in  the  field  covered  by  this  Agreement 
have been adopted on the basis of Article 94 of the Treaty, the Commission considers that the 
Council  should  act  unanimously  to  approve  the  proposals  for  a  decision.  According  to  the 
ECOFIN Council conclusions of 21 January 2003, the Council agrees too that the Agreement 
with the Principality of Andorra should be adopted on the basis of unanimity. 

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Proposal for a 

COUNCIL DECISION 

concerning the signature of the Agreement between the European Community and the 
Principality of Andorra providing for measures equivalent to those laid down in Council 
Directive 2003/48/EC on taxation of savings income in the form of interest payments and  
the approval and signature of the accompanying Memorandum of Understanding 

THE COUNCIL OF THE EUROPEAN UNION 

Having regard to the Treaty establishing the European Community, and in particular Article 
94 in conjunction with the first subparagraph of paragraph 2 of Article 300 thereof, 

Having regard to the proposal from the Commission4, 

Whereas: 

(1) 

(2) 

(3) 

On  16  October  2001  the  Council  authorised  the  Commission  to  negotiate  with  the 
Principality  of  Andorra  an  appropriate  agreement  for  securing  the  adoption  by  the 
Principality  of  measures  equivalent  to  those  to  be  applied  within  the  Community  to 
ensure effective taxation of savings income in the form of interest payments. 

The  text  of  the  Agreement  which  is  the  result  of  the  negotiations  duly  reflects  the 
negotiating directives issued by the Council. It is accompanied by a Memorandum of 
Understanding  between the  European Community and  its  Member  States, of  the one 
part, and the Principality of Andorra of the other part. 

Subject  to  the  adoption  at  a  later  date  of  a  Decision  on  the  conclusion  of  the 
Agreement,  it  is  desirable  to  sign  the  two  documents  that  were  initialled  on  1st  July 
2004  and  have  confirmation  of  the  Council  approval  of  the  Memorandum  of 
Understanding. 

HAS DECIDED AS FOLLOWS: 

Sole Article 

Subject  to  the  adoption  at  a  later  date  of  a  Decision  on  the  conclusion  of  the  Agreement 
between  the  European  Community  and  the  Principality  of  Andorra  providing  for  measures 
equivalent to those laid down in Council Directive 2003/48/EC on taxation of savings income 
in  the  form  of  interest  payments,  the  President  of  the  Council  is  hereby  authorized  to 
designate  the  persons  empowered  to  sign,  on  behalf  of  the  European  Community,  the 
Agreement  and  the  accompanying  Memorandum  of  Understanding  and  the  Letters  from  the 

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OJ C , , p. . 

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European Community referred to in Article 19, paragraph 2 of the Agreement and in the last 
paragraph of the Memorandum of Understanding. 

The text of the above mentioned Memorandum of Understanding, attached to this Decision, is 
approved by the Council. 

Done at Brussels,  

For the Council 
The President 

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Annex 

MEMORANDUM OF UNDERSTANDING 

between the European Community, the Kingdom of Belgium, the Czech Republic, the 
Kingdom of Denmark, the Federal Republic of Germany, the Republic of Estonia, the 
Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, 
the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Grand Duchy 
of Luxembourg, the Republic of Hungary, the Republic of Malta, the Kingdom of the 
Netherlands, the Republic of Austria, the Republic of Poland, the Portuguese Republic, the 
Republic of Slovenia, the Slovak Republic, the Republic of Finland, the Kingdom of Sweden, 
the United Kingdom of Great Britain and Northern Ireland 

and 

the Principality of Andorra 

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MEMORANDUM OF UNDERSTANDING 

between the European Community, the Kingdom of Belgium, the Czech Republic, the 
Kingdom of Denmark, the Federal Republic of Germany, the Republic of Estonia, the 
Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, 
the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Grand Duchy 
of Luxembourg, the Republic of Hungary, the Republic of Malta, the Kingdom of the 
Netherlands, the Republic of Austria, the Republic of Poland, the Portuguese Republic, the 
Republic of Slovenia, the Slovak Republic, the Republic of Finland, the Kingdom of Sweden, 
the United Kingdom of Great Britain and Northern Ireland 

and 

the Principality of Andorra 

When  an  Agreement  providing  for  measures  equivalent  to  those  laid  down  in  the  Council 
Directive  2003/48/EC  of  3  June  2003  on  taxation  of  income  from  interest  payments 
(hereinafter  referred  to  as  "the  Directive")  was  concluded,  the  European  Community,  the 
Kingdom of Belgium, the Czech Republic, the Kingdom of Denmark, the Federal Republic of 
Germany, the Republic of Estonia, the Hellenic Republic, the Kingdom of Spain, the French 
Republic,  Ireland,  the  Italian  Republic,  the  Republic  of  Cyprus,  the  Republic  of  Latvia,  the 
Republic  of  Lithuania,  the  Grand  Duchy  of  Luxembourg,  the  Republic  of  Hungary,  the 
Republic of Malta, the Kingdom of the Netherlands, the Republic of Austria, the Republic of 
Poland, the Portuguese Republic, the Republic of Slovenia, the Slovak Republic, the Republic 
of  Finland,  the  Kingdom  of  Sweden,  the  United  Kingdom  of  Great  Britain  and  Northern 
Irelandand  and  the  Principality  of  Andorra  signed  this  Memorandum  of  Understanding 
supplementing this Agreement. 

1, 

2. 

3. 

The signatories to this Memorandum of Understanding consider that the Agreement 
between  the  European  Community  and  the  Principality  of  Andorra  providing  for 
measures  equivalent  to  those  laid  down  in  the  Directive  and  this  Memorandum  of 
Understanding  is  a  acceptable  agreement  protecting  the  legitimate  interests  of  both 
Parties. Consequently, they shall apply in good faith the measures agreed and shall 
refrain  from  taking  any  unilateral  action  which  might  jeopardise  this  Agreement 
without reasonable cause. If a serious discrepancy is discovered between the scope of 
the Directive adopted on 3 June 2003 (Council Directive 2003/48/EC) and that of the 
Agreement,  in  particular  as  concerns  Articles  4  and  6  of  the  Agreement,  the 
Contracting Parties shall consult each other forthwith in accordance with Article 13, 
paragraph  4  of  the  Agreement  to  ensure  that  the  equivalent  nature  of  the  measures 
provided for by the Agreement is safeguarded. 

The  European  Community  undertakes  to  enter  into,  within  the  transitional  period 
provided for in the abovementioned Directive, discussions with other major financial 
centres  to  ensure  that  measures  equivalent  to  those  of  the  Directive  are  applied  by 
these jurisdictions. 

With  a  view  to  applying  Article  12  of  the  Agreement  between  the  European 
Community  and  the  Principality  of  Andorra  providing  for  measures  equivalent  to 
those laid down in the Directive , the Principality of Andorra undertakes to introduce 
into  its  legislation  during  the  first  year  of  the  application  of  the  agreement,  the 
concept of the crime of tax fraud, consisting at least of the use of documents which 

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4. 

5. 

are  false,  falsified,  or  recognised  as  being  incorrect  in  terms  of  their  content,  with 
intent  to  deceive  the  tax  authorities  in  the  field  of  taxation  of  savings  income.  The 
signatories  to  this  Memorandum  of  Understanding  note  that  this  definition  of  tax 
fraud concerns only needs relating to the taxation of savings, within the framework 
of the Agreement between the European Community and the Principality of Andorra 
providing for measures equivalent to those laid down in the Directive , and is without 
prejudice  to  developments  and/or  decisions  relating  to  tax  fraud  under  other 
circumstances and in other fora. 

The  Principality  of  Andorra  and  each  Member  State  of  the  European  Community 
wishing  to  do  so  shall  enter  into  bilateral  negotiations  to  define  the  administrative 
procedure for the exchange of information. 

The signatories to the present Memorandum of Understanding solemnly declare that 
the signing of the agreement on the taxation of savings, together with the opening of 
negotiations for a monetary agreement, constitute a significant step in the deepening 
of cooperation between the Principality and the European Union. 

In  this  context  of  deepening  relations,  in  parallel  with  the  bilateral  negotiations 
provided  under  point  4,  the  Principality  of  Andorra  and  each  Member  State  of  the 
European Community shall enter into consultations with a view to defining a wider 
field  of  application  for  economic  and  fiscal  cooperation.  These  consultations  will 
take place in a spirit of cooperation that takes account of the efforts for alignment in 
the fiscal area achieved by the Principality of Andorra and solidified by the signature 
of this agreement. In particular, these consultations might lead to the implementation: 

– 

– 

of  bilateral  programmes  for  economic  cooperation  in  order  to  promote  the 
integration of the Andorran economy into the European economy, 

of  bilateral  cooperation  in  the  area  of  taxation  aimed  at  examining  the 
conditions in which withholding taxes levied by the Member States on receipts 
from  the  provision  of  services  and  financial  products,  might  be  eliminated  or 
reduced. 

Drawn  up  at........................,  on  ........................  in  duplicate  in  the  Catalan,  Danish,  Dutch, 
English,  Finnish,  French,  German,  Greek,  Italian,  Portuguese,  Spanish  and  Swedish 
languages, each of these languages being equally authentic. 

The, Czech, Estonian, Hungarian, Latvian, Lithuanian, Maltese, Polish, Slovak and Slovenian 
language  versions  shall  be  authenticated  by  the  Contracting  Parties  on  the  basis  of  an 
exchange  of  letters.  They  shall  also  be  authentic,  in  the  same  way  as  for  the  languages 
referred to in the preceding paragraph. 

Signatures 

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2004/0192 (CNS) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Agreement between the European Community and the 
Principality of Andorra providing for measures equivalent to those laid down in Council 
Directive 2003/48/EC  
on taxation of savings income in the form of interest payments  

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 94 in conjunction with the first subparagraph of paragraph 2, the first subparagraph of 
paragraph 3 and paragraph 4 of Article 300 thereof, 

Having regard to the proposal of the Commission,5 

Having regard to the opinion of the European Parliament,6 

Whereas: 

(1) 

(2) 

(3) 

(4) 

On  16  October  2001  the  Council  authorised  the  Commission  to  negotiate  with  the 
Principality  of  Andorra  an  appropriate  agreement  for  securing  the  adoption  by  the 
Principality  of  measures  equivalent  to  those  to  be  applied  within  the  Community  to 
ensure effective taxation of savings income in the form of interest payments. 

The  text  of  the  Agreement  which  is  the  result  of  the  negotiations  duly  reflects  the 
negotiating directives issued by the Council. It is accompanied by a Memorandum of 
Understanding  between the  European  Community and its Member States, of the  one 
part, and the Principality of Andorra of the other part, the text of which is attached to 
Council Decision …./…./EC of ……2004. 

The application of the provisions of Council Directive 2003/48/EC of 3 June 2003 on 
taxation of savings income in the form of interest payments depends on the application 
by  the  Principality  of  Andorra  of  measures  equivalent  to  those  contained  in  this 
Directive, in accordance with an agreement concluded by the Principality of Andorra 
with the European Community. 

According to Council Decision …./…./EC of ……2004, and subject to the adoption at 
a  later  date  of  a  Decision  on  the  conclusion  of  the  Agreement,  the  Agreement  was 
signed on behalf of the European Community on ….2004. 

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OJ C …, ……..2003, p… 
OJ C …, ……..2003, p… 

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(5) 

The Agreement should be approved on behalf of the Community, 

(6) 

It is necessary to provide for a simple and rapid procedure for possible adaptations of 
Annexes I and II to the Agreement, 

HAS DECIDED AS FOLLOWS:  

Article 1 

The Agreement between the European Community and the Principality of Andorra providing 
for measures equivalent to those laid down in Council Directive 2003/48/EC of 3 June 2003 
on taxation of savings income in the form of interest payments is hereby approved on behalf 
of the European Community. 

The text of the Agreement is attached to this Decision. 

Article 2 

The  Commission  is  hereby  authorised  to  approve,  on  behalf  of  the  Community,  the 
amendments  to  the  Annexes  to  the  Agreement  which  are  required  to  ensure  that  they 
correspond to the information relating to the competent authorities notified under Article 5(a) 
of Directive 2003/48/EC and to the information in the Annex thereto. 

The President of the Council shall give the notification provided for in the first paragraph of 
Article 15 of the Agreement on behalf of the Community.7 

Article 3 

Article 4 

This Decision shall be published in the Official Journal of the European Union. 

Done at Brussels, 

For the Council 
The President 

7 

The date of entry into force of the Agreement will be published in the Official Journal of the European 
Union by the General Secretariat of the Council. 

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Annex 

Agreement between the European Community and the Principality of Andorra providing for 
measures  equivalent  to  those  laid  down  in  Council  Directive  2003/48/EC  on  taxation  of 
savings income in the form of interest payments 

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Agreement 

between 

the European Community 

and 

the Principality of Andorra 

providing for measures equivalent to those laid down in the Council Directive 2003/48/EC of 
3 June 2003 on taxation of savings income in the form of interest payments  

The European Community  

and 

the Principality of Andorra 

hereafter  referred  to  as  a  “Contracting  Party”  or  “Contracting  Parties”  as  the  context  may 
require, 

With a view to introducing measures equivalent to those laid down in the Council Directive 
2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments, 
hereinafter  referred  to  as  “the  Directive”,  within  a  framework  of  cooperation  which  takes 
account  of  the  legitimate  interests  of  both  Contracting  Parties  and  in  a  context  where  other 
third countries in a situation similar to that of the Principality of Andorra will also be applying 
measures equivalent to the Directive; 

Have concluded the following Agreement: 

Article 1 

Aim 

1. 

Within  a  framework  of  cooperation  between  the  European  Community  and  the 
Principality of Andorra savings income in the form of interest payments made in the 
Principality  of  Andorra  to  beneficial  owners  who  are  individuals  identified  as 
residents  of  a  Member  State  of  the  European  Community  in  accordance  with  the 
procedures laid down in Article 3 of this Agreement shall be subject to a withholding 
tax  to  be  levied  by  paying  agents  established  on  the  territory  of  the  Principality  of 
Andorra  under  the  conditions  laid  down  in  Article  7  of  this  Agreement.  This 
withholding tax shall be levied unless the voluntary disclosure measures are applied 
in  accordance  with  the  rules  set  out  in  Article 9.  The  income  corresponding  to  the 
amount of withholding tax levied in accordance with Articles 7 and 9 shall be shared 
between  the  Member  States  of  the  European  Community  and  the  Principality  of 
Andorra according to the rules set out in Article 8. To ensure that this Agreement is 
equivalent  to  the  Directive,  these  measures  shall  be  supplemented  by  rules  on  the 
exchange of information on request set out in Article 12 and by the consultation and 
review procedures described in Article 13. 

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2. 

1. 

2. 

1. 

2. 

The  Contracting  Parties  shall  take  the  necessary  measures  to  implement  this 
Agreement.  The  Principality  of  Andorra  shall  in  particular  take  the  necessary 
measures to ensure the tasks required to implement this Agreement are carried out, 
irrespective  of  the  place  of  establishment  of  the  debtor  of  the  debt  claim  which 
produces  the  interest,  by  the  paying  agents  established  on  its  territory,  and  shall 
expressly provide for provisions on procedures and penalties. 

Article 2 

Definition of beneficial owner 

For  the  purposes  of  this  Agreement,  “beneficial  owner”  means  any  individual  who 
receives  an  interest  payment  or  any  individual  for  whom  an  interest  payment  is 
secured, unless he provides proof that this payment has not been made or secured on 
his own account, where: 

(a) 

he acts as a paying agent within the meaning of Article 4 or  

(b)  he acts on behalf of a legal person, an entity whose profits are taxed under the 
general  arrangements  for  business  taxation,  an  undertaking  for  collective 
investment  in  transferable  securities  established  in  a  Member  State  of  the 
European Community or in the Principality of Andorra, or  

(c) 

he acts on behalf of another individual who is the beneficial owner and informs 
the  paying  agent  of  the  identity  of  this  beneficial  owner  in  accordance  with 
Article 3 paragraph 1.  

Where a paying agent possesses information suggesting the individual receiving an 
interest  payment  or  for  whom  an  interest  payment  is  secured  may  not  be  the 
beneficial  owner,  it  must  take  reasonable  measures  to  establish  the  identity  of  the 
beneficial owner in accordance with Article 3 paragraph 1. If the paying agent is not 
able  to  identify  the  beneficial  owner,  it  shall  treat  the  individual  in  question  as  the 
beneficial owner.  

Article 3 

Identity and residence of beneficial owners 

The paying agent shall establish the identity of the beneficial owner in the form of 
his  name,  forename  and  address  according  to  the  anti-money-laundering  provisions 
applying in the Principality of Andorra. 

The paying agent shall establish the residence of the beneficial owner on the basis of 
rules which may vary according to the time at which the relations between the paying 
agent  and  the  beneficial  owner  of  the  interest  are  entered  into.  Subject  to  the 
conditions set out below residence shall be considered to be in the country where the 
beneficial owner has his permanent address: 

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(a)  For contractual relations entered into before 1 January 2004, the paying agent 
shall  establish  the  residence  of  the  beneficial  owner  according  to  the  anti-
money-laundering provisions applying in the Principality of Andorra; 

(b)  For contractual relations entered into, or transactions carried out in the absence 
of  contractual  relations,  on  or  after  1  January  2004,  the  paying  agent  shall 
establish  the  residence  of  the  beneficial  owner  on  the  basis  of  the  address 
mentioned in the official identity document or, if necessary, on the basis of any 
documentary  proof  presented  by  the  beneficial  owner  and  according  to  the 
following  procedure:  for  individuals  presenting  an  official  identity  document 
issued by a Member State of the European Community who declare that they 
are  resident  in  a  State  which  is  not  a  Member  of  the  European  Community, 
residence shall be established by means of a residence certificate or a document 
authorising residence issued by the competent authority of that third country in 
which the individual declares he is resident. If such a certificate of residence or 
document  authorising  residence  cannot  be  provided,  residence  shall  be 
considered  to  be  in  the  Member  State  of  the  European  Community  which 
issued the official identity document. 

Article 4 

Definition of paying agent 

For the purposes of this Agreement, “paying agent” means any economic operator established 
in the Principality of Andorra who pays interest to, or secures the payment of interest for the 
immediate  benefit  of,  the  beneficial  owner,  whether  the  operator  is  the  debtor  of  the  debt 
claim  which  produces  the  interest  or  the  operator  charged  by  the  debtor  or  the  beneficial 
owner with paying interest or securing payment of the interest. 

Article 5 

Definition of competent authority 

1. 

2. 

For  the  purposes  of  this  Agreement  the  “competent  authorities”  of  the  Contracting 
Parties are those listed in Annex I. 

For  third  countries,  the  competent  authority  is  that  defined  for  the  purposes  of 
bilateral  or  multilateral  tax  conventions  or,  failing  that,  such  other  authority  as  is 
competent to issue certificates of residence for tax purposes. 

Article 6 

Definition of interest payment 

1. 

For the purposes of this Agreement, “interest payment” means: 

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(a) 

(b) 

(c) 

interest  paid  or  credited  to  an  account  relating  to  debt  claims  of  any  kind, 
whether  or  not  secured  by  mortgage  and  whether  or  not  carrying  a  right  to 
participate  in  the  debtor’s  profits,  and  in  particular,  income  from  government 
securities  and  income  from  bonds  or  debentures,  including  premiums  and 
prizes attaching to such securities, bonds or debentures; penalty charges for late 
payment shall not be regarded as interest payments; 

interest  accrued  or  capitalised  on  the  sale,  refund  or  redemption  of  the  debt 
claims referred to in (a); 

income  deriving  from  interest  payments,  either  directly  or  through  an  entity 
referred to in Article 4 paragraph 2 of the Directive distributed by: 

i. 

ii. 

undertakings for collective investment established in a Member State of 
the European Community or in the Principality of Andorra; 

entities  which  qualify  for  the  option  under  Article  4  paragraph  3  of  the 
Directive; 

iii. 

undertakings  for  collective  investment  established  outside  the  territory 
referred to in Article 17; 

(d) 

income  realised  on  the  sale,  refund  or  redemption  of  shares  or  units  in  the 
following  undertakings  and  entities,  if  they  invest  directly  or  indirectly  via 
other undertakings for collective investment or entities referred to below, more 
than 40% of their assets in debt claims as referred to in (a): 

i. 

ii. 

undertakings for collective investment established in a Member State of 
the European Community or in the Principality of Andorra, 

entities  which  qualify  for  the  option  under  Article  4  paragraph  3  of  the 
Directive; 

iii. 

undertakings  for  collective  investment  established  outside  the  territory 
referred to in Article 17. 

However,  the  Principality  of  Andorra  shall  have  the  option  of  including  income 
mentioned under (d) in the definition of interest payment only to the extent that such 
income  corresponds  to  gains  directly  or  indirectly  deriving  from  interest  payments 
within the meaning of (a) and (b). 

2. 

3. 

As  regards  paragraph  1(c)  and  (d),  when  a  paying  agent  possesses  no  information 
concerning  the proportion of the income which derives from interest payments, the 
total amount of the income shall be considered to be an interest payment. 

As regards paragraph 1(d), when a paying agent possesses no information concerning 
the percentage of the assets invested in debt claims or in shares or units defined in 
that  paragraph,  that  percentage  shall  be  considered  to  be  more  than  40%.  Where  it 
cannot determine the amount of income realised by the beneficial owner, the income 
shall be deemed to correspond to the proceeds of the sale, refund or redemption of 
the shares or units. 

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4. 

5. 

6 

7 

1. 

As regards paragraph 1(b) and (d), the Principality of Andorra shall have the option 
of  requiring  paying  agents  in  its  territory  to  annualise  the  interest  over  a  period  of 
time  which  may  not  exceed  one  year,  and  treating  such  annualised  interest  as  an 
interest payment even if no sale, redemption or refund occurs during this period. 

Income derived from undertakings or entities that have invested up to 15% of their 
assets  in  debt-claims  within  the  meaning  of  paragraph  1(a)  are  not  considered  as  a 
payment of interest within the meaning of paragraph 1 (c) and (d). 

From 1 January 2011, the percentage referred to in paragraph 1(d) and paragraph 3 
shall be 25%. 

The percentages referred to in paragraph 1(d) and paragraph 5 shall be determined by 
reference  to  the  investment  policy  laid  down  in  the  fund  rules  or  instruments  of 
incorporation of the undertakings or entities concerned and, failing that, by reference 
to the actual composition of the assets of the undertakings or entities concerned. 

Article 7 

Withholding tax 

Where  the  beneficial  owner  of  the  interest  is  resident  in  a  Member  State  of  the 
European Community, the Principality of Andorra shall levy a withholding tax at a 
rate  of  15%  in  the  first  three  years  of  application  of  this  Agreement,  20%  in  the 
subsequent three years and 35% thereafter. 

2. 

The paying agent shall levy withholding tax as follows: 

(a) 

(b) 

in  the  case  of  an  interest  payment  within  the  meaning  of  Article  6  paragraph 
1(a): on the amount of interest paid or credited; 

in  the  case  of  an  interest  payment  within  the  meaning  of  Article  6  paragraph 
1(b) or (d): on the amount of interest or income referred to in those paragraphs 
or by means of a levy of equivalent effect to be borne by the recipient on the 
full amount of the proceeds of the sale, redemption or refund; 

(c) 

in  the  case  of  an  interest  payment  within  the  meaning  of  Article  6  paragraph 
1(c): on the amount of income referred to in that paragraph; 

(d)  where  the  Principality  of  Andorra  exercises  the  option  under  Article  6 

paragraph 4: on the amount of annualised interest. 

3. 

For the purposes of points (a) and (b) of paragraph 2, withholding tax shall be levied 
pro rata to the period of holding of the debt claim by the beneficial owner. When the 
paying agent is unable to determine the period of holding on the basis of information 
in  its  possession,  it  shall  treat  the  beneficial  owner  as  having  held  the  debt  claim 
throughout  its  period  of  existence  unless  he  provides  evidence  of  the  date  of 
acquisition. 

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4. 

5. 

1. 

2. 

1. 

2. 

Tax imposed on and tax withheld on an interest payment other than the withholding 
tax  provided  for  under  this  Agreement  shall  be  deducted  from  the  withholding  tax 
calculated in accordance with paragraphs 1 to 3 on the same interest payment. 

Subject  to  the  provisions  of  Article  10,  the  levying  of  withholding  tax  by  a  paying 
agent established in the Principality of Andorra shall not preclude the Member State 
of  the  European  Community  of  residence  for  tax  purposes  of  the  beneficial  owner 
from taxing the income in accordance with its national law. 

Where a taxpayer declares income from interest paid by a paying agent established in 
the  Principality  of  Andorra  to  the  tax  authorities  of  the  Member  State  of  the 
European Community where he resides, this income shall be taxed at the same rate as 
that applying to interest earned in this Member State. 

Article 8 

Revenue sharing 

The Principality of Andorra shall retain 25% of its revenue from the withholding tax 
referred  to  in  Article  7  and  transfer  75%  to  the  Member  State  of  the  European 
Community of residence of the beneficial owner of the interest. 

Such  transfers  shall  take  place  in  one  single  operation  for  each  Member  State  for 
each calendar year at the latest within a period of six months following the end of the 
calendar year in which the tax was levied.  

The  Principality  of  Andorra  shall  take  the  necessary  measures  to  ensure  the  proper 
functioning of the revenue-sharing system. 

Article 9 

Voluntary disclosure 

The Principality of Andorra shall provide for a procedure allowing beneficial owners 
not  to  bear  the  withholding  tax  referred  to  Article  7  where  the  beneficial  owner 
provides his paying agent with a certificate drawn up in his name by the competent 
authority  of  his  Member  State  of  residence  in  accordance  with  the  provisions  of 
paragraph 2.  

At the request of the beneficial owner, the competent authority of his Member State 
of residence shall issue a certificate containing the following information: 

(a) 

the name, forename, address and tax identification number or, failing such, the 
date and place of birth of the beneficial owner; 

(b) 

the name and address of the paying agent; 

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(c) 

the  account  number  of  the  beneficial  owner  or,  where  there  is  none,  the 
identification of the security. 

This certificate shall be valid for a period not exceeding three years. It shall be issued 
to any beneficial owner who requests it within two months of the date of submission 
of the request. 

Article 10 

Elimination of double taxation 

The Member State of the European Community of residence for tax purposes of the 
beneficial  owner  shall  ensure  the  elimination  of  any  double  taxation  which  might 
result  from  the  imposition  of  the  withholding  tax  referred  to  in  Article  7,  in 
accordance with the provisions of paragraphs 2 and 3. 

If  interest  received  by  a  beneficial  owner  has  been  subject  to  the  withholding  tax 
referred  to  in  Article  7  in  the  Principality  of  Andorra,  the  Member  State  of  the 
European  Community  of  residence  for  tax  purposes  of  the  beneficial  owner  shall 
grant him, in accordance with its national law, a tax credit equal to the amount of tax 
withheld. Where this amount exceeds the amount of tax due in accordance with its 
national law on the total amount of interest subject to withholding tax, the Member 
State of residence for tax purposes shall repay the excess amount of tax withheld to 
the beneficial owner. 

If, in addition to the withholding tax referred to in Article 7, interest received by a 
beneficial  owner  has  been  subject  to  any  other  type  of  withholding  tax  and  the 
Member State of the European Community of residence for tax purposes grants a tax 
credit for such withholding tax in accordance with its national law or double taxation 
conventions,  such  other  withholding  tax  shall  be  credited  before  the  procedure  in 
paragraph 2 is applied. 

The Member State of the European Community of residence for tax purposes of the 
beneficial  owner  may  replace  the  tax  credit  mechanism  referred  to  in  paragraphs  2 
and 3 by a refund of the withholding tax referred to in Article 7. 

Article 11 

Negotiable debt securities 

From  the  date  of  application  of  this  Agreement  and  as  long  as  the  Principality  of 
Andorra  imposes  the  withholding  tax  referred  to  in  Article  7,  and  at  least  one 
Member  State  of  the  European  Community  applies  a  similar  withholding  tax,  but 
until  31  December  2010  at  the  latest,  domestic  and  international  bonds  and  other 
negotiable debt securities which were first issued before 1 March 2001 or for which 
the  original  issuing  prospectuses  were  approved  before  that  date  by  the  competent 
authorities  within  the  meaning  of  Council  Directive  80/390/EEC,  or  by  the 
responsible  authorities  in  the  Principality  of  Andorra,  or  by  the  responsible 

1. 

2. 

3. 

4. 

1. 

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authorities  in  third  countries  shall  not  be  considered  to  be  debt  claims  within  the 
meaning  of  Article  6  paragraph  1(a),  provided  that  no  further  issues  of  such 
negotiable debt securities are made after 1 March 2002. 

2. 

However, as long as at least one of the Member States of the European Community 
also  applies  similar  measures,  the  provisions  of  this  Article  shall  continue  to  apply 
beyond 31 December 2010 in respect of negotiable debt securities: 

– 

– 

– 

which contain gross-up and early redemption clauses, and  

where the paying agent defined in Article 4 is established in the Principality of 
Andorra, and  

where the paying agent pays interest to, or secures the payment of interest for 
the immediate benefit of, a beneficial owner resident in a Member State of the 
European Community.  

If and where all Member States of the European Community cease to apply similar 
provisions, the provisions of this Article shall continue to apply solely in respect of 
negotiable debt securities: 

– 

– 

– 

which contain gross-up and early redemption clauses, and  

where  the  paying  agent  of  the  issuer  is  established  in  the  Principality  of 
Andorra, and 

where that paying agent pays interest to, or secures the payment of interest for 
the immediate benefit of, a beneficial owner resident in a Member State of the 
European Community. 

If a further issue is made on or after 1 March 2002 of an abovementioned negotiable 
debt security issued by a government or a related entity acting as a public authority 
or  whose  role  is  recognised  by  an  international  treaty,  the  entire  issue  of  such 
security, consisting of the original issue and any further issue, shall be considered a 
debt claim within the meaning of Article 6 paragraph 1(a). 

If a further issue is made on or after 1 March 2002 of an abovementioned negotiable 
debt security issued by any other issuer not covered by the above subparagraph, such 
further  issue  shall  be  considered  a  debt  claim  within  the  meaning  of  Article  6 
paragraph 1(a). 

3. 

This  Article  shall  not  prevent  Member  States  of  the  European  Community  and  the 
Principality  of  Andorra  from  taxing  the  income  from  the  negotiable  debt  securities 
referred to in paragraph 1 in accordance with their national laws. 

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Article 12 

Exchange of information on request 

1. 

2. 

3. 

The competent authorities of the Principality of Andorra and the Member States of 
the European Community shall exchange information concerning the income covered 
by this Agreement on conduct constituting a crime of tax fraud under the laws of the 
requested State or the like. The like includes only an offence with the same level of 
wrongfulness  as  conduct  constituting  a  crime  of  tax  fraud  under  the  laws  of  the 
requested State.  

Until  it  introduces  the  concept  of  the  crime  of  tax  fraud  in  its  internal  law,  the 
Principality of Andorra shall undertake, where it is the requested State, to treat as tax 
fraud  for  the  purposes  of  the  foregoing,  conduct  which,  as  a  result  of  deception, 
damages  the  financial  interests  of  the  tax  authorities  of  the  requesting  State  and 
constitutes under the laws of the Principality of Andorra the crime of fraud. 

In response to a duly justified request, the requested State shall provide information 
concerning matters mentioned above in this article which are subject to, or likely to 
be subject to, an investigation by the requesting State on a non criminal or -criminal 
basis. 

In order to determine whether information may be provided in response to a request, 
the  requested  State  shall  apply  the  statute  of  limitations  under  the  law  of  the 
requesting State instead of the statute of limitations applicable under the law of the 
requested State. 

The  requested  State  shall  provide  information  where  the  requesting  State  has 
reasonable grounds for suspecting that such conduct might constitute the crime of tax 
fraud  or  the  like.  Where  the  Principality  of  Andorra  is  the  requested  State,  the 
acceptability of the request must be determined within a time limit of two months, by 
the judicial authorities of the Principality of Andorra in relation to the conditions laid 
down in this Article. 

4. 

The  requesting  State’s  grounds  for  suspecting  that  an  offence  may  have  been 
committed may be based on: 

(a) 

documents, whether authenticated or not, including books of accounts or 
accounting documents or documents relating to bank accounts; 

(b) 

statements by the taxpayer; 

(c) 

information  obtained  from  an  informant  or  other  third  person  that  has 
been independently corroborated or otherwise appears credible; or 

(d) 

circumstantial indirect evidence. 

5. 

Any information exchanged in this way shall be treated as confidential and may be 
disclosed only to persons or the competent authorities of the Contracting Party with 
competence  for  taxation  of  the  interest  payments  referred  to  in  Article  1,  either  as 
regards withholding tax, and the revenue deriving therefrom referred to in Articles 7 

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6. 

1. 

2. 

3. 

4. 

and  8,  or  as  regards  the  voluntary  disclosure  arrangements  referred  to  in  Article  9. 
Those  persons  or  authorities  may  disclose  the  information  received  in  public  court 
proceedings or in judicial decisions concerning such taxation.  

Information  may  be  communicated  to  another  person  or  authority  only  with  the 
written  and  prior  agreement  of  the  competent  authority  of  the  party  providing  the 
information.  

The Principality of Andorra shall agree to enter into bilateral negotiations with any 
Member State wishing to do so, in order to define the individual categories of cases 
falling under “the like” in accordance with the procedure applied by that State. 

Article 13 

Consultation and review 

The Contracting Parties shall consult each other at least every three years or at the 
request of either Contracting Party with a view to examining, and – if they consider it 
necessary  –  improving  the  technical  functioning  of  the  Agreement  and  assessing 
international  developments.  Consultations  shall  be  held  within  one  month  of  the 
request or as soon as possible in urgent cases. On the basis of such an assessment, the 
Contracting Parties may consult each other in order to examine whether changes to 
the Agreement are necessary in the light of international developments. 

Once they have acquired sufficient experience of the full implementation of article 7 
paragraph  1  of  the  Agreement,  the  Contracting  Parties  shall  consult  each  other  in 
order  to  examine  whether  changes  to  the  Agreement  are  necessary  in  the  light  of 
international developments. 

For the purposes of the consultations referred to above, the Contracting Parties shall 
inform each other of any developments which could affect the proper functioning of 
this  Agreement.  This  shall  also  include any  relevant  agreement  between  one  of  the 
Contracting Parties and a third country. 

In the event of disagreement between the competent authorities of the Principality of 
Andorra and one or more of the other competent authorities of the Member States of 
the  European  Community  in  accordance  with  Article  5  of  this  Agreement  on  the 
interpretation or application of the Agreement, they shall endeavour to resolve their 
differences amicably. They shall immediately notify the European Commission and 
the competent authorities of the other Member States of the European Community of 
the  results  of  their  consultations.  The  European  Commission  may  take  part  in  the 
consultations  at  the  request  of  any  of  the  competent  authority  on  issues  of 
interpretation. 

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Article 14 

Application 

1. 

2. 

3. 

4. 

5. 

Application of this Agreement is conditional on the adoption and implementation by 
the  dependent  or  associated  territories  of  Member  States  mentioned  in  the  report 
from the Council (Economic and Financial Affairs) to the European Council of Santa 
Maria de Feira of June 19/20, 2000, and by the United States of America, Monaco, 
Liechtenstein,  Switzerland  and  San  Marino  of  measures  which  are  respectively 
identical or equivalent to those laid down in the Directive or in this Agreement and 
providing for the same dates of implementation. 

The  Contracting  Parties  shall  decide  by  mutual  consent,  at  least  six  months  before 
the  date  referred  to  in  paragraph  6,  whether  the  condition  set  out  in  paragraph  1  is 
satisfied  as  regards  the  dates  of  entry  into  force  of  the  relevant  measures  in  third 
countries  and  the  dependent  or  associated  territories  concerned.  If  the  Contracting 
Parties  do  not  decide  that  this  condition  is  met,  they  shall  fix  by  mutual  consent  a 
new date for the purposes of paragraph 6. 

Notwithstanding  its  institutional  arrangements,  the  Principality  of  Andorra  shall 
implement  this  Agreement  on  the  date  referred  to  in  paragraph  6  and  notify  this 
measure to the European Community. 

Implementation  of  this  Agreement  or  parts  thereof  may  be  suspended  by  either 
Contracting Party with immediate effect by means of notification to the other party 
where  the  Directive  or  a  corresponding  part  thereof  ceases  to  be  applicable  either 
temporarily or permanently in accordance with European Community law, or where 
one of the Member States of the European Community suspends the application of its 
implementing legislation. 

Either  Contracting  Party  may  also  suspend  implementation  of  this  Agreement  by 
notifying the other if one of the five third countries referred to above (United States 
of  America,  Monaco,  Liechtenstein,  Switzerland  or  San  Marino)  or  one  of  the 
dependent  or  associated  territories  of  the  Member  States  of  the  European  Union 
referred  to  in  paragraph  1  subsequently  cease  applying  measures  identical  or 
equivalent  to  those  of  the  directive.  Suspension  of  implementation  shall  not  come 
into effect until two months after notification. The Agreement shall begin applying 
again once measures have been reincorporated.  

6. 

The  Contracting  Parties  shall  adopt  the  laws,  regulations  and  administrative 
provisions necessary to comply with this Agreement by 1 July 2005 at the latest. 

Article 15 

Signing, entry into force and termination 

1. 

This  Agreement  must  be  ratified  or  approved  by  the  Contracting  Parties  in 
accordance with their internal procedures. The Contracting Parties shall notify each 

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2. 

1. 

2. 

other  when  these  procedures  have  been  completed.  The  Agreement  shall  enter  into 
force on the first day of the second month following the last notification.  

Either Contracting Party may terminate this Agreement by giving notice to the other. 
In  such  a  case,  the  Agreement  shall  cease  to  have  effect  twelve  months  after  the 
serving of notice.  

Article 16 

Claims and final provisions 

Termination  or  the  total  or  partial  suspension  of  this  Agreement  shall  not  affect 
claims by individuals. 

In such a case, the Principality of Andorra shall draw up a final account before this 
Agreement  ceases  to  apply  and  make  a  final  payment  to  the  Member  States  of  the 
European Community. 

Article 17 

Territorial scope 

This Agreement shall apply, on the one hand, to the territories where the treaty establishing 
the European Community applies, and under the conditions provided in the said treaty, and on 
the other hand, to the territory of the Principality of Andorra. 

Article 18 

Annexes  

1. 

2. 

The two Annexes shall form an integral part of this Agreement. 

The list of competent authorities featured in Annex I may be modified by a simple 
notification to the other Contracting Party: by the Principality of Andorra in so far as 
it  concerns  the  authority  identified  in  point  (a)  of  the  said  annex;  and  by  the 
European Community in so far as it concerns the other authorities. 

The list of related entities featured in Annex II can be amended by common accord. 

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Article 19 

Languages 

1. 

2. 

The  present  agreement  is  drafted  in  duplicate  in  the  following  languages:  Catalan  , 
Danish,  Dutch,  English,  Finnish,  French,  German,  Greek,  Italian,  Portuguese, 
Spanish and Swedish; the texts in each language are equally authentic. 

The  Czech,  Estonian,  Hungarian,  Latvian,  Lithuanian,  Maltese,  Polish,  Slovak  and 
Slovenian language versions shall be authenticated by the Contracting Parties on the 
basis of an exchange of letters. They shall also be authentic, in the same way as for 
the languages referred to in the preceding paragraph. 

IN  WITNESS  WHEREOF  the  undersigned  plenipotentiairies,  have  signed  the  present 
Agreement. 

Signed at......................., ......................... 

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Annex I 

List of competent authorities of the Contracting Parties 

The competent authorities for the purposes of this Agreement are: 

a) 

b) 

c) 

d) 

e) 

f) 

g) 

h) 

i) 

j) 

k) 

l) 

m) 

n) 

o) 

p) 

q) 

in  the  Principality  of  Andorra:  El  o  la  Ministre  de  Finances  or  an  authorised 
representative  and  el  o  la  Ministre  de  Justicia  i  d’Interior  or  an  authorised 
representative, 

in the Kingdom of Belgium: De Minister van Financiën/Le Ministre des Finances or 
an authorised representative, 

in the Czech Republic: Ministr financí or an authorised representative, 

in the Kingdom of Denmark: Skatteministeren, or an authorised representative, 

in  the  Federal  Republic  of  Germany:  Der  Bundesminister  der  Finanzen  or  an 
authorised representative, 

in the Republic of Estonia: Rahandusminister or an authorised representative 

in the Hellenic Republic: Ο Υπουργός Οικονοµίας και Οικονοµικών or an authorised 
representative, 

in  the  Kingdom  of  Spain:  El  Ministro  de  Economía  y  Hacienda  or  an  authorised 
representative, 

in  the  French  Republic:  Le  Ministre  chargé  du  budget  or  an  authorised 
representative, 

in Ireland: The Revenue Commissioners, or their authorised representative, 

in  the  Italian  Republic:  Il  Capo  del  Dipartimento  per  le  Politiche  Fiscali  or  an 
authorised representative, 

in the Republic of Cyprus: Υπουργός Οικονοµικών, or an authorised representative, 

in the Republic of Latvia: Finanšu ministrs or an authorised representative, 

in the Republic of Lithuania:: Finansų ministras or an authorised representative,  

in  the  Grand  Duchy  of  Luxembourg:  Le  Ministre  des  Finances  or  an  authorised 
representative; however, for the purposes of Article 12, the competent authority shall 
be “le Procureur Général d’Etat luxembourgeois”, 

in the Republic of Hungary: A pénzügyminiszter or an authorised representative, 

in  the  Republic  of  Malta:  Il-Ministru  responsabbli  għall-Finanzi  or  an  authorised 
representative, 

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r) 

s) 

t) 

u) 

v) 

w) 

x) 

y) 

z) 

in  the  Kingdom  of  the  Netherlands:  De  Minister  van  Financiën  or  an  authorised 
representative, 

in  the  Republic  of  Austria:  Der  Bundesminister  für  Finanzen  or  an  authorised 
representative, 

in the Republic of Poland: Minister Finansów or an authorised representative, 

in the Portuguese Republic: O Ministro das Finanças or an authorised representative, 

in the Republic of Slovenia: Minister za financií or an authorised representative, 

in the Slovak Republic: Minister financií or an authorised representative, 

in the Republic of Finland: Valtiovarainministeriö/Finansministeriet or an authorised 
representative, 

in the Kingdom of Sweden: Finansdepartementet or an authorised representative, 

in  the  United  Kingdom  of  Great  Britain  and  Northern  Ireland  and  in  the  European 
territories  for  whose  external  relations  the  United  Kingdom  is  responsible:  the 
Commissioners  of  Inland  Revenue  or  their  authorised  representative  and  the 
competent  authority  in  Gibraltar,  which  the  United  Kingdom  shall  designate  in 
accordance  with  the  Agreed  Arrangements  relating  to  the  competent  authority  in 
Gibraltar  with  the  EU  and  EC  instruments  and  relevant  Treaties,  notified  to  the 
Member States and institutions of the European Union on 19 April 2000, of which a 
copy shall be notified to the Principality of Andorra by the Secretary General of the 
Council of the European Union, and which shall apply to this Agreement. 

EN 

27 

   EN 

 
Annex II 

LIST OF RELATED ENTITIES 

For the purposes of Article 11 of this Agreement, the following entities shall be considered to 
be  “a  related  entity  acting  as  a  public  authority  or  whose  role  is  recognised  by  an 
international treaty”: 

ENTITIES WITHIN THE EUROPEAN UNION: 

Belgium 

– 

– 

– 

– 

– 

– 

Spain 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Région flamande (Vlaams Gewest) 

Région wallonne 

Région bruxelloise (Brussels Gewest) 

Communauté française 

Communauté flamande (Vlaamse Gemeenschap) 

Communauté germanophone (Deutschsprachige Gemeinschaft) 

Xunta de Galicia 

Junta de Andalucía 

Junta de Extremadura 

Junta de Castilla- La Mancha 

Junta de Castilla- León 

Gobierno Foral de Navarra 

Govern de les Illes Balears 

Generalitat de Catalunya 

Generalitat de Valencia 

Diputación General de Aragón 

Gobierno de las Islas Canarias 

Gobierno de Murcia 

Gobierno de Madrid 

EN 

28 

   EN 

 
– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Greece 

– 

– 

– 

France 

– 

– 

– 

– 

– 

– 

– 

Gobierno de la Comunidad Autónoma del País Vasco/Euzkadi 

Diputación Foral de Guipúzcoa 

Diputación Foral de Vizcaya/Bizkaia 

Diputación Foral de Alava 

Ayuntamiento de Madrid 

Ayuntamiento de Barcelona 

Cabildo Insular de Gran Canaria 

Cabildo Insular de Tenerife 

Instituto de Crédito Oficial 

Instituto Catalán de Finanzas 

Instituto Valenciano de Finanzas 

Оργανισµός 
Organisation) 

Тηλεπικοινωνιών 

Ελλάδος 

(National 

Telecommunications 

Оργανισµός Σιδηροδρόµων Ελλάδος (National Railways Organisation) 

∆ηµόσια Επιχείρηση Ηλεκτρισµού (Public Electricity Company) 

La Caisse d'amortissement de la dette sociale (CADES) ; 

L'Agence française de développement (AFD) ; 

Réseau Ferré de France (RFF); 

Caisse Nationale des Autoroutes (CNA) ; 

Assistance publique Hôpitaux de Paris (APHP) ; 

Charbonnages de France (CDF) ; 

Entreprise minière et chimique (EMC). 

Italy 

– 

– 

– 

Regions 

Provinces 

Municipalities 

EN 

29 

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– 

Cassa Depositi e Prestiti 

Latvia 

– 

Pašvaldības (local governments) 

Poland 

– 

– 

– 

– 

– 

– 

– 

– 

– 

gminy (communes) 

powiaty (districts) 

województwa (provinces) 

związki gmin (associations of communes) 

związki powiatów (associations of districts) 

związki województw (associations of provinces) 

miasto stołeczne Warszawa (Warsaw capital) 

Agencja  Restrukturyzacji  i  Modernizacji  Rolnictwa  (Agency  for  the  restructuring 
and the modernisation of agriculture) 

Agencja Nieruchomości Rolnych (Agency for agricultural property) 

Portugal 

– 

– 

– 

Região Autónoma da Madeira (Autonomous Region of Madeira) 

Região Autónoma dos Açores (Autonomous Region of Azores) 

Municipalities 

Slovakia 

– 

– 

– 

– 

– 

mestá a obce (municipalities) 

Železnice Slovenskej republiky (Slovak Railway Company) 

Štátny fond cestného hospodárstva (State Road Management Fund) 

Slovenské elektrárne (Slovak Power Plants) 

Vodohospodárska výstavba (Water Economy Building Company) 

INTERNATIONAL ENTITIES: 

– 

– 

EN 

European Bank for Reconstruction and Development 

European Investment Bank 

30 

   EN 

 
– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Asian Development Bank 

African Development Bank 

World Bank/IBRD/IMF 

International Finance Corporation 

Interamerican Development Bank 

Council of Europe Social Development Fund  

EURATOM 

European Community 

Andean Development Corporation 

Eurofima 

European Coal and Steel Community 

Nordic Investment Bank 

Caribbean Development Bank 

The  provisions  of  Article  11  are  without  prejudice  to  any  international  obligations  that  the 
Contracting  Parties  may  have  entered  into  in  respect  of  the  abovementioned  international 
entities.  

THIRD COUNTRY ENTITIES: 

Entities satisfying the following criteria: 

1. 

2. 

3. 

4. 

The entity is considered to be a public entity according to national criteria; 

This public entity is a non-market producer which administers and finances a group 
of activities, principally non-market goods or services intended for the benefit of the 
Community, and which is effectively controlled by public administration;  

This public entity is a large and regular issuer of debt securities; 

The State concerned is able to guarantee that this public entity will not exercise early 
redemption in the event of gross-up clauses. 

EN 

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   EN