Proposal for a Council Decision on the signature of the Agreement between the European Community and the Republic of San Marino 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
Date: 2004-10-08
Institutions: European Commission
Subjects: San Marino, exchange of information, fiscal policy, savings, signature of an agreement, simplification of formalities, tax avoidance, tax convention

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 21.10.2004 
COM(2004) 643 final/2 

2004/0241 (CNS) 

Corrigendum: 
Nouveau n° d'acronyme. 
Concerne les 3 versions linguistiques 
pages 1 et 11. 

Proposal for a 

COUNCIL DECISION 

on the signature of the Agreement between the European Community and the Republic 
of San Marino 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 Republic 
of San Marino 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) 

EN 

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EXPLANATORY MEMORANDUM 

By its Decision of 16 October 2001, the Council authorised the Commission to negotiate with 
Switzerland, the United States of America, Andorra, Liechtenstein, Monaco and San Marino 
appropriate agreements for securing the adoption by these countries 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  Commission  was  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  third 
countries  asking  for  negotiations  to  commence  even  though  it  was  only  after  the  ECOFIN 
Council's  approval  of  a  text  of  the  draft  Directive,  on  13  December  2001,  that  these 
negotiations  could  really  begin.  A  large  number  of  meetings  at  both  political  and  technical 
level have been held since. In accordance with the Council Decision of 16 October 2001, the 
Commission  conducted  these  negotiations  in  close  conjunction  with  the  successive 
Presidencies  of  the  Council.  The  Commission  made  regular  oral  progress  reports  of  these 
negotiations  to  the  Council  and  the  Parliament  and  presented  a  Communication  on  the 
negotiations with third countries on taxation of savings income to the ECOFIN Council of 3 
December  20022.  At  the  ECOFIN  Council's  request,  negotiations  on  taxation  of  savings 
income have continued since.  

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

– 

"The four elements of this agreement relating to the Savings Taxation constitute also 
the  basis  for  agreements  between  the  European  Union  and  Liechtenstein,  Andorra, 
Monaco and San Marino. …." 

Earlier that year, on 21 January 2003, the Council had determined the four elements to be: 

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

- 
withholding as Belgium, Luxembourg and Austria… 

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

- 
accept the 75/25 division applied within the Community…  

Voluntary disclosure of information 

- 
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  if  changes  to  the  agreement  are 
necessary taking into account international developments. 

1 
2 

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

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Switzerland grants exchange of information on request for all criminal or civil cases of fraud 
or similar misbehaviour on the part of taxpayers………………." 

The Agreement with San Marino, which includes these four elements, is now being presented 
to the Council for signature and conclusion. The Agreement is accompanied by an ancillary 
Memorandum of Understanding (hereinafter MoU) between the Republic of San Marino and 
the  European  Community  together  with  each  of  its  Member  States.  In  accordance  with  the 
ECOFIN  Council  conclusions  of  21  January  2003,  the  MoU  confirms  that,  during  the 
transitional  period  provided  for  in  Council  Directive  2003/48/EC  of  3  June  20033,  the 
European Community will enter into discussions with other important financial centres with a 
view to promoting the adoption by those jurisdictions of measures equivalent to those to be 
applied  by  the  Community.  The  MoU  also  provides  that  the  agreed  measures  will  be 
implemented  in  good  faith  and  that  parties  will  not  act  unilaterally  to  undermine  this 
arrangement  without  due  cause.  Should  any  significant  difference  between  the  coverage  of 
Council  Directive  2003/48/EC  and  that  of  the  Agreement  be  discovered,  the  Contracting 
Parties will immediately enter into consultations with a view to ensuring that the equivalent 
nature of the measures provided for in the Agreement is maintained.  

The MoU adds that the conclusion of fiscal agreements with Member States of the European 
Union  and  San  Marino's  commitment  to  provide,  within  this  framework,  for  information 
exchange in accordance with the standards of the OECD would enhance wider economic and 
tax cooperation. Recognising the efforts made by San Marino, consultations could take place 
between  San  Marino  and  the  Member  States  of  the  European  Union  with  the  objective  of 
eliminating or reducing, on a bilateral basis, double taxation in relation to different forms of 
income. 

The MoU also states that the parties shall enter into consultations as soon as possible with a 
view to:  

– 

– 

examining the conditions for gradually improving mutual free access to the financial 
markets  of  both  Parties.  A  preliminary  condition  is  the  need  for  the  relevant 
prudential rules, and the supervision of the San Marino's operators concerned, to be 
of  a  kind  that  will  preserve  the  proper  functioning  of  the  internal  market  in  the 
sectors  in  question.  Any  possible  Agreement  in  this  field  must  be  founded  on  the 
adoption  and  the  implementation,  by  the  Republic  of  San  Marino,  in  the  relevant 
business  sectors,  of  the  existing,  and  future,  « acquis  communautaire ».  Such  an 
Agreement  should  also  provide  that  the  Republic  of  San  Marino  undertakes  to 
implement other Community rules, both current and those to be introduced in future, 
for example in matters of competition and taxation, which are also relevant to ensure 
the proper functioning of the internal market in the sectors in question; 

examining  the  possibilities  of  simplifying  the  procedures  laid  down  in  their 
Agreement on Customs Union and Cooperation. In this regard, the Republic of San 
Marino  is  ready  to  adopt  computerised  procedures  similar  to  the  INTRASTAT 
system;  

3 

OJ L 157, 26.06.2003, p.38 

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– 

examining the possibilities for access by nationals of the Republic of San Marino to 
research,  study  and  higher  training  programmes  implemented  by  the  European 
Community;  

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 text on 2 June this year and the Council High-Level Working Party 
mentioned above confirmed its consensus on the details of the Agreement and of the MoU on 
9 June. 

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 on taxation of savings income in 
the  form  of  interest  payments,  and  on  approval  and  signature  of  the  accompanying 
MoU, 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  proposal  for  a  decision.  According  to  the 
ECOFIN  Council  conclusions  of  21  January  2003,  the  Council  agrees  that  the  Agreement 
with the Republic of San Marino should be entered into on the basis of unanimity. 

EN 

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Proposal for a 

COUNCIL DECISION 

on the signature of the Agreement between the European Community and the Republic 
of San Marino 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 
Republic  of  San  Marino  an  appropriate  agreement  for  securing  the  adoption  by  the 
Republic  of  San  Marino  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  reflects  duly  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 Republic of San Marino 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  12  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, the 
President of the Council is hereby authorised to designate the persons empowered to sign the 
Agreement between the European Community and the Republic of San Marino 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  accompanying  Memorandum  of 

4 

OJ C …, ……..2004, p… 

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Understanding and the letters referred to in Article 21, paragraph 2 of the Agreement and in 
the last paragraph of the Memorandum of Understanding on behalf of the Community. 

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

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 Republic of San Marino 

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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 Republic of San Marino 

When  an  Agreement  providing  for  measures  equivalent  to  those  laid  down  in  the  Council 
Directive 2003/48/EC of 3 June 2003 on the taxation of savings income in the form of interest 
payments  (hereinafter  “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 
Ireland  and  the  Republic  of  San  Marino  signed  this  Memorandum  of  Understanding 
supplementing this Agreement. 

1. 

The signatories to this Memorandum of Understanding consider that the Agreement 
between  the  Republic  of  San  Marino  and  the  European  Community  providing  for 
measures equivalent to those laid down in the Directive is a balanced and acceptable 

EN 

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agreement protecting the 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  as  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 15, paragraph 1 of the Agreement to 
ensure that the equivalent nature of the measures provided for by the Agreement is 
safeguarded.  The  signatories  to  this  Memorandum  of  Understanding  note  that  the 
definition of tax fraud for the purposes of Article 13 of the Agreement concerns only 
needs relating to the taxation of savings within the framework of this Agreement and 
is  without  prejudice  to  developments  and/or  decisions  relating  to  tax  fraud  under 
other circumstances and in other fora. 

During  the  transitional  period  provided  for  in  the  Directive,  the  European 
Community shall enter into discussions with other important financial centres with a 
view  to  promoting  the  adoption  by  those  jurisdictions  of  measures  equivalent  to 
those to be applied by the Community. 

Considering  that  the  Republic  of  San  Marino  wishes  to  be  further  integrated  in  the 
European  economic  environment,  and  that  it  considers  its  full  participation  in  the 
European  banking  and  financial  system  as  therefore  appropriate  and  desirable,  the 
Republic  and  the  European  Community  shall  enter  into  consultations  as  soon  as 
possible with a view to identify the conditions for reaching a mutual recognition of 
the prudential measures and systems of the respective Parties on financial services, 
including insurance. In this context, the Republic of San Marino, in order to preserve 
the proper functioning of the internal market in the sectors in question, undertakes to 
adopt  and  implement,  in  the  relevant  business  sectors,  the  relevant  existing,  and 
future,  “acquis  communautaire”,  including  the  relevant  prudential  rules  and  the 
supervision of the San Marino operators concerned. Any possible Agreement in this 
field  may  also  provide  that  the  Republic  of  San  Marino  undertakes  to  implement 
other relevant Community rules, both current and those to be introduced in future, for 
example in matters of competition and taxation. 

In  this  context  of  deepening  relations,  the  conclusion  of  fiscal  agreements  with 
Member  States  of  the  European  Union  and  San  Marino's  commitment  to  provide, 
within this framework, for information exchange in accordance with the standards of 
the  OECD  would  enhance  wider  economic  and  tax  cooperation.  Recognising  the 
efforts made by San Marino, consultations could take place between San Marino and 
the  Member  States  of  the  European  Union  with  the  objective  of  eliminating  or 
reducing,  on  a  bilateral  basis,  double  taxation  in  relation  to  different  forms  of 
income. 

2. 

3. 

4. 

5. 

The  European  Community  and  the  Republic  of  San  Marino  shall  also  enter  into 
consultations with a view to: 

– 

defining forms for simplifying the procedures laid down in their Agreement on 
Customs Union and Cooperation. In this regard, the Republic of San Marino is 
ready  to  adopt  computerised  procedures  even  similar  to  the  INTRASTAT 
system;  

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– 

better exploring the existing possibilities for nationals and enterprises from the 
Republic of San Marino to participate in research and development Community 
programmes and activities. 

Signed  at  ........................  on  ........................  in  duplicate  in  the  Danish,  Dutch,  English, 
Finnish, French, German, Greek, Italian, Portuguese, Spanish and Swedish languages, each of 
these texts 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 previous paragraph. 

Signatures 

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2004/0241 (CNS) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Agreement between the European Community and the Republic 
of San Marino 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 from the Commission5, 

Having regard to the opinion of the European Parliament6, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

On  16  October  2001,  the  Council  authorised  the  Commission  to  negotiate  with  the 
Republic  of  San  Marino  an  appropriate  agreement  for  securing  the  adoption  by  the 
Republic  of  San  Marino  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  reflects  duly  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 Republic of San Marino of the other part, the text of which is attached to 
Council Decision …/…/EC of … 2004. 

The application of the provisions of the 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 Republic of San Marino of measures equivalent to those contained 
in this Directive, in accordance with an Agreement entered into by the Republic of San 
Marino 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. 

5 
6 

OJ C …, ……..2004, p… 
OJ C …, ……..2004, 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 Republic of San Marino providing 
for  measures  equivalent  to  those  laid  down  in  Directive  2003/48/EC  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, amendments 
to the Annexes to the Agreement which ensure that they correspond to the data relating to the 
competent authorities resulting from the notifications referred to in Article 5(a) of Directive 
2003/48/EC and in the Annex thereto. 

The President of the Council shall effect the notification provided for in Article 16, paragraph 
1 of the Agreement on behalf of the Community7. 

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. 

EN 

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ANNEX  

Agreement between the European Community and the Republic of San Marino 
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 

EN 

13 

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Agreement 

between 

the European Community 

and 

the Republic of San Marino 

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 Republic of San Marino 

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

have concluded the following Agreement: 

Article 1 

Aim 

1. 

2. 

The purpose of this Agreement between the European Community and the Republic of San 
Marino is to consolidate and extend the existing close relations between the two Parties by 
establishing 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  made  to 
beneficial  owners,  individuals,  resident  for  tax  purposes  in  a  Member  State  of  the 
European Community, hereinafter referred to as the Directive. 

The Republic of San Marino shall take the necessary measures and specifically provide for 
provisions  on  procedures  and  penalties,  to  ensure  that  the  tasks  necessary  for  the 
implementation of this Agreement are carried out by paying agents established within its 
territory,  irrespective  of  the  place  of  establishment  of  the  debtor  of  the  debt-claim 
producing the interest. 

EN 

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Article 2 

Definition of beneficial owner 

1. 

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 evidence that it was not received or secured for his own benefit, that is to say that: 

(a) 

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

(b)  he acts on behalf of a legal person, an investment fund or a comparable or equivalent 

body for common investments in securities, or  

(c) 

he acts on behalf of another individual who is the beneficial owner and discloses to 
the paying agent the identity of that beneficial owner in accordance with Article 3. 

2. 

Where  a  paying  agent  has  information  suggesting  that  the  individual  who  receives  an 
interest  payment  or  for  whom  an  interest  payment  is  secured  may  not  be  the  beneficial 
owner, and where neither paragraph 1(a) nor 1(b) applies to that individual, that agent shall 
take reasonable steps to establish the identity  of  the  beneficial  owner  in  accordance  with 
Article  3.  If  the  paying  agent  is  unable  to  identify  the  beneficial  owner,  that  agent  shall 
treat the individual in question as the beneficial owner. 

Article 3 

Identity and residence of beneficial owners 

In order to establish the identity and residence of the beneficial owner within the meaning of Article 
2, the paying agent shall keep record of the family name, the first name and the data concerning the 
address and residence status in accordance with the Republic of San Marino Law against usury and 
money-laundering. For contractual relations entered into, or transactions carried out in the absence 
of contractual relations, on or after 1 January 2004, for individuals presenting a passport or official 
identity  card  issued  by  a  Member  State  who  declare  themselves  to  be  resident  in  a  country  other 
than a Member State or the Republic of San Marino, residence shall be established by means of a 
tax  residence  certificate  issued  by  the  competent  authority  of  the  country  in  which  the  individual 
claims to be resident. Failing the presentation of such a certificate, the Member State which issued 
the passport or other official identity document shall be considered the country of residence. 

Article 4 

Definition of paying agent 

For  the  purposes  of  this  Agreement,  “paying  agent”  in  the  Republic  of  San  Marino  shall  mean 
banks  under  San  Marino  banking  law,  as  well  as  economic  operators  including  natural  and  legal 
persons  resident  or  established  in  the  Republic  of  San  Marino,  partnerships  and  permanent 
establishments  of  foreign  companies,  which,  even  occasionally,  accept,  hold,  invest  or  transfer 
assets of third parties or merely pay or secure interests in the course of their business. 

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Article 5 

Definition of competent authority 

1. 

2. 

For  the  purposes  of  this  Agreement  the  competent  authorities  of  the  Contracting  Parties 
shall mean those listed in Annex I. 

The competent authorities of countries not included in the Contracting Parties shall mean 
those  authorities  of  such  countries  which  are  competent  for  the  purposes  of  bilateral  or 
multilateral  conventions,  or,  failing  that,  which  are  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: 

(a) 

(b) 

(c) 

interest paid, or credited to an account, relating to debt-claims of every 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  payments  shall  not  be 
regarded as interest payments; 

interest  accrued  or  capitalised  at  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 or comparable or equivalent bodies for 
common investments in securities established within the territory referred to in 
Article 19,  

an  entity  domiciled  in  a  Member  State,  which  exercises  the  option  under 
Article  4,  paragraph  3  of  the  Directive  and  informs  the  paying  agent  of  this 
fact,  

(iii)  undertakings for collective investment or comparable or equivalent bodies for 
common investment in securities established outside the territory referred to in 
Article 19; 

(d) 

income  realised  upon  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): 

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16 

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(i) 

(ii) 

undertakings for collective investment or comparable or equivalent bodies for 
common investments in securities established within the territory referred to in 
Article 19,  

an  entity  domiciled  in  a  Member  State,  which  exercises  the  option  under 
Article  4,  paragraph  3  of  the  Directive  and  informs  the  paying  agent  of  this 
fact, 

(iii)  undertakings for collective investment or comparable or equivalent bodies for 
common investment in securities established outside the territory referred to in 
Article 19. 

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

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

As  regards  paragraph  1(d),  when  a  paying  agent  has  no  information  concerning  the 
percentage  of  the  assets  invested  in  debt-claims  or  in  shares  or  units  as  defined  in  that 
paragraph, that percentage shall be considered to be above 40%. Where that agent 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. 

As  regards  paragraph  1(b)  and  (d),  the  Republic  of  San  Marino  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 that period. 

By way of derogation from paragraphs 1(c) and (d), the Republic of San Marino shall have 
the option of excluding from the definition of interest payment any income referred to in 
those  provisions  from  undertakings  or  entities  established  within  its  territory  where  the 
investment in  debt-claims referred  to in paragraph  1(a)  of  such  entities  has  not  exceeded 
15% of their assets. 

The  exercise  of  such  option  by  the  Republic  of  San  Marino,  once  notified  to  the  other 
Contracting Party, shall be binding on both Contracting Parties. 

The percentage referred to in paragraph 1(d) and paragraph 3 shall after 31 December 2010 
be 25%. 

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

2. 

3. 

4. 

5. 

6. 

7. 

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17 

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Article 7 

Withholding tax 

1. 

Where the beneficial owner is resident in a Member State of the European Community, the 
Republic of San Marino shall levy a withholding tax at a rate of 15% during the first three 
years from the date of application of this Agreement, 20% for 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  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 Republic of San Marino exercises the option under Article 6, paragraph 4: 

on the amount of annualised interest. 

For the purposes of points (a) and (b) of paragraph 2, withholding tax is 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. 

Taxes other than that provided for in this Agreement on the same interest payment, and in 
particular  the  withholding  taxes  levied  by  the  Republic  of  San  Marino  on  San  Marino’s 
source  interest  income,  shall  be  credited  against  the  amount  of  the  withholding  tax 
calculated in accordance with this article. 

The  imposition  of  withholding  tax  by  the  paying  agent  located  in  the  Republic  of  San 
Marino  shall  not  preclude  the  Member  State  of  the  European  Community  where  the 
beneficial owner has his residence for tax purposes from taxing the income in accordance 
with its domestic law. In cases where a taxpayer declares his interest income obtained from 
a paying agent located in the Republic of San Marino to the tax authorities in the Member 
State of the European Community where he has his residence, that interest income shall be 
subject to taxation there at the same rates as those applied to interest earned domestically. 

3. 

4. 

5. 

Article 8 

Revenue sharing 

1. 

The  Republic  of  San  Marino  shall  retain  25%  of  its  revenue  from  the  withholding  tax 
referred  to  in  Article  7  and  transfer  75%  of  the  revenue  to  the  Member  State  of  the 

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18 

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2. 

3. 

1. 

European  Community  where  the  beneficial  owner  of  the  interest  payment  has  his 
residence. 

Such  transfers  shall  take  place  in  one  instalment  per  Member  State  of  the  European 
Community at the latest within a period of 6 months following the end of the tax year of 
the Republic of San Marino.  

The  Republic  of  San  Marino  shall  take  the  necessary  measures  to  ensure  the  proper 
functioning of the revenue sharing system. 

Article 9 

Voluntary disclosure  

The  Republic  of  San  Marino  shall  provide  for  a  procedure  which  allows  the  beneficial 
owner  as  defined  in  Article  2  to  avoid  the  withholding  tax  referred  to  in  Article  7  by 
expressly authorising his paying agent established in the Republic of San Marino to report 
the  interest  payments  to  the  competent  authority  of  the  Republic  of  San  Marino.  Such 
authorisation  shall  cover  all  interest  payments  made  to,  or  secured  for  the  immediate 
benefit of, the beneficial owner by that paying agent. 

2. 

The minimum amount of information to be reported by the paying agent in case of express 
authorisation by the beneficial owner shall consist of: 

(a) 

the  identity  and  residence  of  the  beneficial  owner  established  in  accordance  with 
Article  3  of  this  Agreement,  supplemented  when  available  by  the  tax  identification 
number  allocated  by  the  Member  State  of  the  European  Community  where  the 
beneficial owner has his residence; 

(b) 

the name and address of the paying agent; 

(c) 

(d) 

the account number of the beneficial owner or, where there is none, identification of 
the debt-claim giving rise to the interest, and 

the amount  of  the  interest payment established in accordance with Article 6 of this 
Agreement. 

3. 

The competent authority of the Republic of San Marino shall communicate the information 
referred to in Paragraph 2 to the competent authority of the Member State of the European 
Community where the beneficial owner has his residence. Such communications shall be 
automatic and shall take place at least once a year, within 6 months following the end of 
the tax year in the Republic of San Marino, for all interest payments made during that year. 

Article 10 

Elimination of double taxation 

1. 

The  Member  State  of  the  European  Community  where  the  beneficial  owner  has  his 
residence for tax purposes shall ensure the elimination of any double taxation which might 

EN 

19 

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2. 

3. 

4. 

1. 

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  Republic  of  San  Marino,  the  Member  State  of  the  European 
Community where the beneficial owner has his residence for tax purposes shall grant him a 
tax  credit  equal  to  the  amount  of  the  tax  withheld  in  accordance  with  its  national  law. 
Where this amount exceeds the amount of tax due in accordance with its national law on 
the  total  amount  of  the  interest  payment  which  has  been  subject  to  the  withholding  tax 
referred  to  in  Article  7,  the  Member  State  of  the  European  Community  where  the 
beneficial owner has his residence for tax purposes shall repay to him the excess amount of 
tax withheld. 

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  where  the  beneficial  owner  has  his  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  where  the  beneficial  owner  has  his 
residence for tax purposes 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 for as long as at least one Member State of 
the European Community also applies similar provisions, and until 31 December 2010 at 
the latest domestic and international bonds and other negotiable debt securities which have 
been first issued before 1 March 2001 or for which the original issuing prospectuses have 
been approved before that date by the authorities which are competent for this purpose in 
the  issuing  state  shall  not  be  considered  as  debt-claims  within  the  meaning  of  Article  6, 
paragraph 1 (a), provided that no further issues of such negotiable debt securities are made 
on or after 1 March 2002.  

However,  for  as  long  as  at  least  one  Member  State  of  the  European  Community  also 
applies  provisions  similar  to  those  of  Article  7  of  this  Agreement,  the  provisions  of  the 
present 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, as defined in Article 4, is established in the Republic of San 
Marino and  

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

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If  and  when  all  Member  States  of  the  European  Community  cease  to  apply  provisions 
similar to those of Article 7 of this Agreement, the provisions of the present Article shall 
continue to apply only in respect of those negotiable securities: 

– 

– 

– 

which contain gross-up and early redemption clauses and  

where the issuer's paying agent is established in the Republic of San Marino and  

where that paying agent pays interest directly 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 aforementioned negotiable debt 
security issued by a Government or a related entity acting as a public authority or whose 
role is recognised by an international Agreement (listed in Annex II to this Agreement), the 
entire issue of such a security, consisting of the original issue and any further issue shall be 
considered a debt-claim within the meaning of Article 6, paragraph 1 point (a). 

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

This  Article  does  not  prevent  the  Republic  of  San  Marino  and  the  Member  States  of  the 
European  Community  from  continuing  to  levy  a  tax  on  revenues  deriving  from  the 
aforementioned  negotiable  debt-claims  in  paragraph  1  in  accordance  with  their  national 
law.  

Article 12 

Other withholding taxes - Relationships with other Agreements 

This Agreement shall not preclude the parties from levying other types of withholding tax 
than  that  referred  to  in  this  Agreement  in  accordance  with  their  national  laws  or  double 
taxation conventions. 

The  provisions  of  the  double  taxation  conventions  between  the  Republic  of  San  Marino 
and  the  Member  States  of  the  European  Community  shall  not  prevent  the  levying  of  the 
withholding tax for which this Agreement provides.  

Article 13 

Exchange of information on request 

The competent authorities of the Republic of San Marino and of any Member State of the 
European Community shall exchange information on conduct constituting tax fraud under 
the  laws  of  the  requested  State,  or  the  like  for  income  covered  by  this  Agreement.  “The 
like” only includes offences with the same level of wrongfulness as is the case for tax fraud 
under the laws of the requested State, resulting in any prejudice for the taxation interests of 

2. 

1. 

2. 

1. 

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21 

   EN 

 
the  requesting  State.  In  response  to  a  duly  justified  request,  the  requested  State  shall 
provide information with respect to the conduct that the requesting State is investigating, or 
may investigate, on a criminal or non criminal basis. 

2. 

3. 

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

The requested State shall provide information where the requesting State has a reasonable 
suspicion  that  the  conduct  would  constitute  tax  fraud  or  the  like.  The  requesting  State’s 
suspicion of tax fraud or the like may be based on: 

a) 

documents,  whether  authenticated  or  not,  and  including  but  not  limited  to  business 
records, books of account, or bank account information; 

b) 

testimonial information from the taxpayer; 

c) 

information  obtained  from  an  informant  or  other  third  person  that  has  been 
independently corroborated or is otherwise likely to be credible; or 

d) 

circumstantial evidence. 

4. 

The competent authority of the requesting State shall provide the following elements to the 
competent  authority  of  the  requested  State  when  making  a  request  for  information  under 
this Agreement to demonstrate the foreseeable relevance of the information to the request: 

(a) 

the identity of the person under examination or investigation; 

(b) 

a statement of the information sought including its nature and the form in which the 
requesting State wishes to receive the information from the requested State; 

(c) 

the tax purpose for which the information is sought; 

(d)  grounds for believing that the information requested is held in the requested State or 
is  in  the  possession  or  control  of  a  person  within  the  jurisdiction  of  the  requested 
State; 

(e) 

(f) 

to the extent known, the name and address of any person believed to be in possession 
of the requested information; 

a statement that the request is in conformity with the law and administrative practices 
of the requesting State, that if the requested information was within the jurisdiction 
of the requesting State then the competent authority of the requesting State would be 
able to obtain the information under the  laws of the  requesting State  or  the normal 
course of administrative practice and that it is in conformity with this Agreement; 

(g) 

a  statement  that  the  requesting  State  has  pursued  all  means  available  in  its  own 
territory  to  obtain  the  information,  except  those  that  would  give  rise  to 
disproportionate difficulties. 

5. 

The competent authority of the requested State shall forward the requested information as 
promptly as possible to the requesting State. 

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6. 

The Republic of San Marino shall enter into bilateral negotiations with each of the Member 
States  in  order  to  define  individual  categories  of  cases  falling  under  “the  like”  in 
accordance with the procedure of taxation applied by those countries. 

Article 14 

Confidentiality  

Any  information  received  by  a  Contracting  Party  under  this  Agreement  shall  be  treated  as 
confidential  and  may  be  disclosed  only  to  persons  or  authorities  (including  courts  and 
administrative bodies) in the jurisdiction of the Contracting Party concerned with the assessment or 
collection  of,  the  enforcement  or  prosecution  in  respect  of,  or  the  determination  of  appeals  in 
relation  to,  the  taxes  covered  by  this  Agreement.  Such  persons  or  authorities  shall  use  such 
information only for such purposes. They may disclose the information in public court proceedings 
or  in  judicial  decisions.  The  information  may  not  be  disclosed  to  any  other  person  or  entity  or 
authority or any other jurisdiction without the express written consent of the competent authority of 
the requested Party. 

Article 15 

Consultation and Review 

1. 

2. 

3. 

4. 

5. 

If any disagreement arises between the competent authority of the Republic of San Marino 
and one or more of the other competent authorities listed in Annex I as to the interpretation 
or application of this Agreement, they shall endeavour to resolve this by mutual agreement. 
They  shall  immediately  notify  the  Commission  of  the  European  Communities  and  the 
competent  authorities  of  the  other  Member  States  of  the  results  of  their  consultations.  In 
relation  to  issues  of  interpretation  the  Commission  may  take  part  in  consultations  at  the 
request of any of the competent authorities listed in Annex I. 

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  deemed  necessary  by  the 
Contracting Parties – improving the technical functioning of the Agreement and assessing 
international  developments.  The  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  taking  into  account 
international developments. 

As soon as sufficient experience of the full implementation of this Agreement is available, 
the Contracting Parties shall consult each other in order to examine whether changes to this 
Agreement are necessary taking into account international developments. 

For the purposes of the consultations referred to in paragraphs 1, 2 and 3, the Contracting 
Parties shall inform each other of possible developments which could impact on the proper 
functioning of this Agreement. This shall also include any relevant agreement between one 
of the Contracting Parties and a third country. 

EN 

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Article 16 

Signing, Entry into force and Termination 

This Agreement requires ratification or approval by the Contracting Parties in accordance 
with  their  own  procedures.  The  Contracting  Parties  shall  notify  each  other  of  the 
completion of these procedures. The Agreement shall enter into force on the first day of the 
second month following the last notification. 

Subject  to  the  fulfilment  of  its  constitutional  requirements  concerning  entering  into 
international agreements and without prejudice to Article 17, the Republic of San Marino 
shall effectively implement and apply this Agreement as from 1 July 2005 and notify the 
European Community thereof. 

This Agreement shall remain in force until terminated by a Contracting Party. 

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 17 

Implementing regulation 

The application of this Agreement shall be conditional on the adoption and implementation 
by  the  dependent  or  associated  territories  of  the  Member  States  of  the  European 
Community 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,  as  well  as  by  the 
United States of America, the Swiss Confederation, Andorra, Liechtenstein, and Monaco, 
respectively, of measures which conform with or are equivalent to those contained in the 
Directive or in this Agreement. 

The  Contracting  Parties  shall  decide,  by  common  accord,  at  least  six  months  before  the 
date  referred  to  in  Article  16,  paragraph  2,  whether  the  condition  set  out  in  the  above 
paragraph  will  be  met  having  regard  to  the  dates  of  entry  into  force  of  the  relevant 
measures  in  the  third  countries  and  dependent  or  associated  territories  concerned.  If  the 
Contracting  Parties  do  not  decide  that  the  condition  will  be  met,  they  shall,  by  common 
accord, adopt a new date for the purposes of Article 16, paragraph 2.  

The application of this Agreement or parts thereof may be suspended by either Contracting 
Party with immediate effect through notification to the other should the Directive or part of 
the Directive cease to be applicable either temporarily or permanently in accordance with 
European  Community  law  or  in  the  event  that  a  Member  State  should  suspend  the 
application of its implementing legislation. 

Either  Contracting  Party  may  suspend  the  application  of  this  Agreement  through 
notification to the other in the event that one of the third countries or territories referred to 
in  paragraph  1  should  subsequently  cease  to  apply  the  measures  referred  to  in  that 
paragraph.  Suspension  of  application  shall  take  place  no  earlier  than  two  months  after 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

4. 

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24 

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notification.  Application  of  this  Agreement  shall  resume  as  soon  as  the  measures  are 
reinstated. 

Article 18 

Claims and Final Settlement 

1. 

2. 

Should  this  Agreement  be  terminated  or  its  application  be  suspended  either  in  full  or  in 
part, the claims of individuals in accordance with Article 10 shall remain unaffected. 

The Republic of San Marino will, in such case, establish a final account by the end of the 
applicability  of  the  Agreement  and  make  a  final  payment  to  the  Member  States  of  the 
European Community.  

Article 19 

Territorial Scope 

This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the 
European  Communities  is  applied  and  under  the  conditions  laid  down  in  that  Treaty  and,  on  the 
other hand, to the territory of the Republic of San Marino. 

Article 20 

Annexes 

1. 

2. 

The Annexes form part of this Agreement. 

The  list  of  competent  authorities  contained  in  Annex  I  can  be  amended  by  simple 
notification  to  the  other  Contracting  Party  by  the  Republic  of  San  Marino,  as  far  as  the 
authority  mentioned  at  point  (a)  of  that  Annex  is  concerned,  and  by  the  European 
Community as far as the other authorities are concerned. 

The list of related entities contained in Annex II can be amended by mutual agreement. 

Article 21 

Languages 

1. 

2. 

This  Agreement  shall  be  drawn  up  in  duplicate  in  the  Danish,  Dutch,  English,  Finnish, 
French, German, Greek, Italian, Portuguese, Spanish and Swedish languages, the texts in 
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 

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25 

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of  an  exchange  of  letters.  They  shall  also  be  authentic,  in  the  same  way  as  for  the 
languages referred to in paragraph 1. 

IN WITNESS WHEREOF the undersigned Plenipotentiaries have hereunder set their hands 

Done at ........................, this ........................ 

For 

For

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Annex I 

List of competent authorities of the Contracting Parties 

The  following  are  "competent  authorities"  of  the  Contracting  Parties  for  the  purposes  of  this 
Agreement: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

in  the  Republic  of  San  Marino:  Il  Segretario  di  Stato  per  le  Finanze  e  il  Bilancio  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 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, 

(l) 

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

(m) 

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

(n) 

(o) 

(p) 

(q) 

(r) 

in 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 13 the competent authority shall be "le 
Procureur Général d'Etat luxemburgeois", 

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

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

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

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(s) 

(t) 

(u) 

(v) 

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 finance or an authorised representative, 

(w) 

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

(x) 

(y) 

(z) 

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  will  designate  in  accordance  with  the 
Agreed  Arrangements  relating  to  Gibraltar  authorities  in  the  context  of  EU  and  EC 
instruments  and  related  treaties  notified  to  the  Member  States  and  institutions  of  the 
European Union of 19 April 2000, a copy of which shall be notified to the Republic of San 
Marino by the Secretary  General  of the  Council of the European Union, and which shall 
apply to this Agreement. 

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Annex 2 

List of related entities 

For the purposes of Article 11 of this Agreement, the following entities will 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 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Vlaams Gewest (Flemish Region) 

Région wallonne (Walloon Region) 

Région bruxelloise/Brussels Gewest (Brussels Region) 

Communauté française (French Community) 

Vlaamse Gemeenschap (Flemish Community) 

Deutschsprachige Gemeinschaft (German-speaking Community) 

Xunta de Galicia (Regional Executive of Galicia) 

Junta de Andalucía (Regional Executive of Andalusia) 

Junta de Extremadura (Regional Executive of Extremadura) 

Junta de Castilla- La Mancha (Regional Executive of Castilla- La Mancha) 

Junta de Castilla- León (Regional Executive of Castilla- León) 

Gobierno Foral de Navarra (Regional Government of Navarre) 

Govern de les Illes Balears (Government of the Balearic Islands) 

Generalitat de Catalunya (Autonomous Government of Catalonia) 

Generalitat de Valencia (Autonomous Government of Valencia) 

Diputación General de Aragón (Regional Council of Aragon) 

Gobierno de las Islas Canarias (Government of the Canary Islands) 

Gobierno de Murcia (Government of Murcia) 

Gobierno de Madrid (Government of Madrid) 

Gobierno  de  la  Comunidad  Autónoma  del  País  Vasco/Euzkadi  (Government  of  the 
Autonomous Community of the Basque Country) 

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– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Greece 

– 

– 

– 

France 

– 

– 

– 

– 

– 

– 

– 

Italy 

– 

– 

– 

– 

Diputación Foral de Guipúzcoa (Regional Council of Guipúzcoa) 

Diputación Foral de Vizcaya/Bizkaia (Regional Council of Vizcaya) 

Diputación Foral de Alava (Regional Council of Alava) 

Ayuntamiento de Madrid (City Council of Madrid) 

Ayuntamiento de Barcelona (City Council of Barcelona) 

Cabildo Insular de Gran Canaria (Island Council of Gran Canaria) 

Cabildo Insular de Tenerife (Island Council of Tenerife) 

Instituto de Crédito Oficial (Public Credit Institution) 

Instituto Catalán de Finanzas (Finance Institution of Catalonia) 

Instituto Valenciano de Finanzas (Finance Institution of Valencia) 

Оργανισµός Тηλεπικοινωνιών Ελλάδος (National Telecommunications Organisation) 

Оργανισµός Σιδηροδρόµων Ελλάδος (National Railways Organisation) 

∆ηµόσια Επιχείρηση Ηλεκτρισµού (Public Electricity Company) 

La Caisse d'amortissement de la dette sociale (CADES) (Social Debt Redemption Fund) 

L'Agence française de développement (AFD) (French Development Agency) 

Réseau Ferré de France (RFF)(French Rail Network) 

Caisse Nationale des Autoroutes (CNA) (National Motorways Fund) 

Assistance publique Hôpitaux de Paris (APHP) (Paris Hospitals Public Assistance) 

Charbonnages de France (CDF) (French Coal Board) 

Entreprise minière et chimique (EMC)(Mining and Chemicals Company) 

Regions 

Provinces 

Municipalities 

Cassa Depositi e Prestiti (Deposits and Loans Fund) 

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Latvia 

– 

Pašvaldības (Local governments) 

Poland 

– 

– 

– 

– 

– 

– 

– 

– 

– 

gminy (communes) 

powiaty (districts) 

województwa (provinces) 

związki gmin (associations of communes) 

związki powiatów (association of districts) 

związki województw (association of provinces) 

miasto stołeczne Warszawa (capital city of Warsaw) 

Agencja  Restrukturyzacji  i  Modernizacji  Rolnictwa  (Agency  for  Restructuring  and 
Modernisation of Agriculture) 

Agencja Nieruchomości Rolnych (Agricultural Property Agency) 

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 

Asian Development Bank 

African Development Bank 

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– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

World Bank / IBRD / IMF 

International Finance Corporation 

Inter-American Development Bank 

Council of Europe Social Development Fund 

EURATOM 

European Community 

Corporación Andina de Fomento (CAF) (Andean Development Corporation) 

Eurofima 

European Coal & 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 with respect to the abovementioned international entities. 

ENTITIES IN THIRD COUNTRIES : 

The entities that meet the following criteria : 

1. 

2. 

3. 

4. 

The entity is clearly considered to be a public entity according to the national criteria. 

Such  public  entity  is  a  non-market  producer  which  administers  and  finances  a  group  of 
activities, principally providing non-market goods and services, intended for the benefit of 
the community and which are effectively controlled by general government.  

Such public entity is a large and regular issuer of debt.  

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

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