Agreement between the European Community and the Principality of Monaco providing for measures equivalent to those laid down in Council Directive 2003/48/EC
Date: 2004-12-07
Institutions: European Community, Monaco
Subjects: Monaco, agreement (EU), interest, savings, tax on income, tax system

21.1.2005

EN

Official Journal of the European Union

L 19/55

between the European Community and the Principality of Monaco providing for measures
equivalent to those laid down in Council Directive 2003/48/EC

AGREEMENT

THE EUROPEAN COMMUNITY

and

THE PRINCIPALITY OF MONACO,

hereinafter referred to as ‘Contracting Party’ or ‘Contracting Parties’, where applicable,

with a view to introducing 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, hereinafter referred to as ‘the Directive’,

HAVE DECIDED TO CONCLUDE THIS AGREEMENT:

Article 1

Aim

resident

To enable savings

in a Member State of

income in the form of

interest
1.
payments made in territory of the Principality of Monaco to
beneficial owners within the meaning of Article 2 who are
individuals
the European
Community to be taken into account for being made subject
to effective taxation in accordance with the laws of the latter
Member State, a withholding tax shall be levied by paying
agents established on the territory of
the Principality of
Monaco on the amount of such interest payments under the
conditions laid down in Articles 7 and 8 of this Agreement,
subject to the voluntary disclosure measures provided for in
Article 9 of this Agreement.

The Principality of Monaco shall

take the measures
2.
required to ensure that the tasks necessary for the implemen-
tation of this Agreement are carried out by paying agents estab-
lished within its territory,
irrespective of the place of estab-
lishment of the debtor of the debt-claim producing the interest.

Article 2

Definition of beneficial owner

For the purposes of this Agreement,

‘beneficial owner’
1.
means any individual who receives an interest payment or
is secured,
any individual
received or
unless he provides evidence that
secured for his own benefit, that is to say that:

for whom an interest payment
it was not

UCITS established on the territory of the Principality of
Monaco for the purpose of investing savings;

(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).

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 indi-
vidual, that paying agent shall take reasonable steps to establish
the identity of the beneficial owner in accordance with Article
3(2). If the paying agent is unable to identify the beneficial
owner,
it shall treat the individual who receives the interest
payment or for whom the interest payment is secured as the
beneficial owner.

Article 3

Identity and place of residence of beneficial owners

1.
The Principality of Monaco shall adopt and ensure the
application of the procedures necessary to allow the paying
agent to identify the beneficial owners and their residence for
the purposes of this Agreement.

2.

Such procedures shall include the following requirements:

(a) he acts as a paying agent within the meaning of Article 4;

(b) he acts on behalf of a legal person, an entity which is taxed
on its profits under Ordonnance Souveraine No 3162 of
19 March 1964, an undertaking for collective investment in
transferable securities (UCITS) or a body equivalent to a

(a)

in the case of contractual relations established before 1
January 2004, the paying agent shall establish the identity
of the beneficial owner within the meaning of Article 2 and
the information
his place of residence on the basis of
identity
available to it, as obtained from the official
document or any other documentary proof of
identity
presented by the beneficial owner, namely an official
document bearing a photograph of the beneficial owner;

L 19/56

EN

Official Journal of the European Union

21.1.2005

(b) in the

case of

relations

contractual

the identity of

established after
transactions conducted on a non-
1 January 2004 or
contractual basis,
the beneficial owner
within the meaning of Article 2 and his place of
residence shall be established on the basis of the passport,
the official identity card or any other documentary proof of
identity presented by the beneficial owner. For individuals
presenting a passport or official
identity card issued by a
Member State of the European Community who declare
themselves to be resident in a State outside the European
Community and the Principality of Monaco, residence shall
be established by means of a tax residence certificate issued
by the competent authority of the State in which the indi-
vidual claims to be resident. Failing the presentation of such
a certificate, the State of residence shall be considered to be
the Member State of the European Community which issued
the passport or other relevant official identity document.

Article 4

Definition of paying agent

‘paying agent’ means any
For the purposes of this Agreement,
bank, individual, legal person, partnership or subsidiary of an
international company in the Principality of Monaco which, in
the course of its business, accepts, holds,
invests or transfers
assets belonging to third parties and, even occasionally, pays
interest
the
secures
immediate benefit of the beneficial owner.

the payment of,

interest

to, or

for

Article 5

Definition of competent authority

For the purposes of this Agreement, the Contracting Parties’
‘competent authorities’ are those listed in Annex 1.

the ‘competent authority’
For third States,
competent to issue certificates of residence for tax purposes.

is the authority

Article 6

Definition of interest payment

For the purposes of this Agreement,

1.
means:

‘interest payment’

(a)

interest paid or credited to an account, relating to debt
claims or client deposits, whether or not
secured by
mortgage and whether or not carrying a right to participate
income from
in the debtor's profits, and,
in particular,
or
and
government
income
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 from loans between private individuals not acting
in the course of their business shall, however, be excluded;

from bonds

securities

(b) interest accrued or capitalised at

the sale,

refund or

redemption of the debt-claims referred to in (a);

(c)

income deriving from interest payments either directly or
through an entity referred to in Article 4(2) of the Directive
established in a Member State of the European Community,
distributed by:

(i)

an undertaking for collective investment established in
a Member State of the European Community or the
Principality of Monaco;

(ii) entities established in a Member State of the European
Community which avail themselves of the option under
Article 4(3) of the Directive and notify the paying agent
thereof, and

(iii) undertakings

for

collective

investment

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):

(i)

an undertaking for collective investment established in
a Member State of the European Community or the
Principality of Monaco;

(ii) entities established in a Member State of the European
Community which avail themselves of the option under
Article 4(3) of the Directive and notify the paying agent
thereof, and

(iii) undertakings

for

collective

investment

established

outside the territory referred to in Article 19.

2.
As regards paragraph 1(c), when a paying agent has no
information concerning the proportion of the income deriving
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 has no
3.
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 the paying 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.

21.1.2005

EN

Official Journal of the European Union

L 19/57

Income from undertakings or entities that have invested
4.
no more than 15 % of their assets in the debt claims referred to
in paragraph 1(a) shall not be considered an interest payment
within the meaning of paragraph 1(c) and (d).

After 31 December 2010 the percentage referred to in

5.
paragraph 1(d) and paragraph 3 shall be 25 %.

6.
The percentage referred to in paragraph 1(d) and in
paragraph 5 shall be determined by reference to the investment
policy laid down in the fund rules or instruments of incor-
poration of the undertakings or entities concerned or, failing
that, by reference to the actual composition of the assets of the
undertakings or entities concerned.

Article 7

Withholding tax

1. Where the beneficial owner is resident in a Member State
of the European Community, the Principality of Monaco shall
levy a withholding tax at a rate of 15 % for the first three years
from the date specified in Article 17, subject to the application
of Article 14(2), a rate of 20 % for the subsequent three years
and a rate of 35 % thereafter.

The levying of withholding tax by a paying agent estab-
5.
lished in the Principality of Monaco shall not preclude the
Member State of the European Community where the beneficial
owner is resident for tax purposes from taxing the income in
law. Where a taxpayer declares
accordance with its national
income from interest paid by a paying agent established in
the Principality of Monaco to the tax authorities of
the
Member State of the European Community where he resides,
this income shall be taxed at the same rate and under the same
general conditions as interest earned within that Member State.

Article 8

Sharing withholding tax

The Principality of Monaco shall

1.
the
revenue generated by the withholding tax levied in accordance
with Article 7 and transfer 75 % to the Member State of the
European Community in which the beneficial owner of the
interest is resident in accordance with Article 3(2)(b).

retain 25 % of

Such transfers shall

2.
take place for each year in one
instalment per Member State at the latest within six months
of the end of the tax year of the Principality of Monaco.

2.

The paying agent shall

levy withholding tax as follows:

3.
The Principality of Monaco shall
necessary to ensure the proper functioning of
sharing system.

take the measures
the revenue-

(a)

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

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

(c)

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

For the purposes of points (a), (b) and (c) of paragraph 2,
3.
withholding tax shall be levied pro rata for the period during
which the beneficial owner held the debt claim, shares or units
that generated the income. 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, shares or units throughout
their period of
existence unless the beneficial owner provides evidence of the
date of acquisition.

4.
Taxes and retentions levied on an interest payment, other
than the withholding tax provided for under this Agreement,
shall be deducted from the withholding tax calculated on that
interest payment in accordance with this Article.

To that end, the Principality of Monaco shall transfer revenue
accruing to the Member State of the European Community
concerned to the competent authority designated in Annex 1
to this Agreement.

Article 9

Voluntary disclosure

The Principality of Monaco shall

1.
lay down a procedure
allowing a beneficial owner within the meaning of Article 2 to
avoid the withholding tax provided for in Article 7 by expressly
authorising his paying agent established in the Principality of
Monaco to disclose interest payments
competent
authority of
the Principality of Monaco. The authorisation
shall cover all interest payments made to the beneficial owner
by that paying agent.

to the

2.
The information to be disclosed by the paying agent in
the event of express authorisation from the beneficial owner
shall include at least:

(a)

the identity and residence of the beneficial owner, estab-
lished in accordance with Article 3;

(b) the name and address of the paying agent;

L 19/58

EN

Official Journal of the European Union

21.1.2005

(c)

the account number of the beneficial owner or the identi-
fication of the debt claim giving rise to the payment of
interest;

Article 11

Negotiable debt securities

(d) the

amount of

the

interest payment,

established in

accordance with Article 6.

3.
The competent authority of the Principality of Monaco
shall forward the information referred to in paragraph 2 to
the competent authority of the Member State of the European
Community where the beneficial owner is resident. This infor-
mation shall be provided at least once a year, within six months
of the end of the tax year of the Principality of Monaco,
in
respect of all interest payments made in the year in question.

Article 10

1.
From the date specified in Article 17, subject to Article
14(2) and for as long as the Principality of Monaco levies the
withholding tax referred to in Article 7 and at least one Member
State of the European Community applies similar provisions,
until 31 December 2010 at the latest, domestic and interna-
tional bonds and other negotiable debt securities first issued
before 1 March 2001, or
issuing
prospectuses were approved before that date by the authorities
competent to do so, shall not be considered debt claims within
the meaning of Article 6(1)(a), provided no further issues of
such negotiable debt securities are made on or after 1 March
2002.

for which the original

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

similar measures,

Elimination of double taxation and/or repayment of
withholding tax

— which contain gross-up and early redemption clauses, and

1.
The Member State of the European Community where the
beneficial owner is resident for tax purposes shall ensure the
elimination of any double taxation which might result from the
levying of
in
accordance with the provisions of paragraphs 2 and 3.

the withholding tax referred to in Article 7,

— where the paying agent defined in Article 4 is established in

the Principality of Monaco, and

the Member State of

2.
If a paying agent in the Principality of Monaco has levied
the withholding tax referred to in Article 7 on interest received
the European
by a beneficial owner,
Community where the beneficial owner is resident
for tax
purposes shall grant him a tax credit equal to the amount of
that withholding tax. 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 the
European Community in which the beneficial owner is resident
for tax purposes shall, regardless of any of its standard tax-
credit mechanisms or divergent administrative practices, repay
the excess amount of tax withheld to the beneficial owner.

3.
If, in addition to the withholding tax referred to in Article
7, interest payments received by a beneficial owner have been
subject to any other type of withholding tax and the Member
State of the European Community of residence for tax purposes
grants or would grant a tax credit for such withholding tax in
accordance with
taxation
law or
such other withholding tax shall be credited
conventions,
before the procedure in paragraph 2 is applied.

national

double

its

4.
The Member State of the European Community where the
beneficial owner is resident for tax purposes may replace the
tax-credit mechanism referred to in paragraphs 2 and 3 by
direct and full repayment of the withholding tax referred to
in Article 7.

— where the paying agent pays interest

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

resident

If and when all Member States of the European Community
cease to apply provisions similar to those of Article 7, 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 Monaco, and

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

resident

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 treaty, as defined in Annex 2, 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(1)(a).

21.1.2005

EN

Official Journal of the European Union

L 19/59

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 previous subparagraph, such further
issue shall be considered a debt claim within the meaning of
Article 6(1)(a).

Once the conditions laid down in Article 13(3) have been
effectively established, the principles for the exchange of infor-
mation laid down in this Article shall apply to equivalent
offences under the legislation of the requested State, comparable
in gravity to the tax fraud defined above.

2.
Nothing in this Article shall prevent Member States of the
European Community from taxing the income from the nego-
tiable debt securities referred to in paragraph 1 in accordance
with their national law.

Article 12

Transmission of information on request

The competent authorities of the Principality of Monaco
1.
the European Community shall
and the Member States of
the
exchange information on acts which constitute, under
national
laws of the requested State, an offence of tax fraud
with regard to the taxation of savings income in the form of
interest payments.

In response to a duly substantiated request in accordance with
paragraph 3, the requested State shall provide information on
cases in which the requesting State has initiated administrative,
civil or criminal proceedings in respect of
the above acts,
confining that information to savings income taxable in the
requesting State.

The information that may be forwarded is that referred to in
Article 9(2).

In order

to determine whether

2.
information may be
provided in response to a request, the requested State shall
use the provisions concerning time-barring under the law of
the requesting State, not those of the requested State. No infor-
mation whatsoever will be provided on offences committed
before 1 July 2005.

When the requested State is the Principality of Monaco, the
following acts shall be considered as constituting tax fraud
with regard to the taxation of savings income in the form of
interest payments:

3.
the
For the purposes of establishing the relevance of
request, the competent authority of the requesting Contracting
Party shall provide the following information, which must be
drafted in the official language of the requested State:

— the use of a false or falsified document or one which
contains
inaccurate information with the intention of
avoiding or attempting to avoid payment of some or all
of the tax due on savings income in the form of interest
payments, punishable by the fine provided for in Article
26(4) of the Monaco Criminal Code, the amount of which
may be up to four times the amount of tax evaded, and/or a
period of imprisonment from eight days to two years,

— fraudulent obtention of a refund of some or all of the tax
due on savings income, punishable by the fine provided for
in Article 26(4) of the Monaco Criminal Code, the amount
of which may be up to four times the amount of
tax
evaded, and/or a period of imprisonment from eight days
to two months,

— the act by anyone bound to collect tax on savings income,
deliberately failing to collect some or all of the tax due,
punishable by a fine of
in
Article 26(4) of the Monaco Criminal Code,

the amount provided for

— the act by anyone bound to collect tax on savings income,
deliberately misappropriating the amounts collected for his
own benefit or that of a third party, punishable by a fine of
the amount provided for in Article 26(4) of the Monaco
Criminal Code.

(a)

the name of the authority submitting the request;

(b) the identity of the individual concerned by the request for
that person's status as a tax
information, evidence of
resident of
and any document,
statement by the individual concerned or other substan-
tiated proof underpinning the request;

requesting State

the

(c)

the grounds for believing that the information requested is
in the
held by the requested Contracting Party or
possession or control of a person within its jurisdiction;

is

(d) a statement that the request is in conformity with the law of
the requesting Contracting Party, and in particular that it is
not time barred;

(e) a statement

that

the requesting Contracting Party has
pursued all means available in its own territory, and/or
provided for by its legislation or regulations, to obtain the
information, except those that would give rise to difficulties;

(f) a statement that the facts already known to the requesting
law, consistent
tax fraud or an equivalent

Contracting Party constitute, under
circumstantial evidence that
offence defined in paragraph 1 has been committed.

its

L 19/60

EN

Official Journal of the European Union

21.1.2005

The requested Contracting Party may refuse to provide the
4.
information requested if the request does not comply with the
provisions of this Agreement.

tax fraud defined in that Article. The Principality of Monaco will
initiate consultations with the European Commission to that
end.

revealed only

and may be

Any information exchanged in this way must be treated as
confidential
to persons or
the other Contracting Party which
competent authorities of
the interest payments
are responsible for
referred to in Article 1. These persons or authorities may
reveal the information received,
in the requesting State only,
in public hearings or judgments relating to such taxation.

the taxation of

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

Article 13

Consultation and review

In the event of disagreement between the competent
1.
authority of
the Principality of Monaco and one or more
competent authorities of the Member States of the European
Community within the meaning of Article 5 on the interpre-
tation or application of this 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 consultations on
issues of
the request of any competent
authority.

interpretation at

Notwithstanding the provisions of paragraph 1,

the
2.
Contracting Parties shall consult each other at
least once
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.

At any rate the Contracting Parties recognise the importance of
covered by this
international developments
Agreement and shall consult each other as necessary at the
consultations provided for
to
examine whether changes to the Agreement are necessary in
the light of international developments.

in this paragraph in order

in the

area

Consultations shall be held within one month of

4.
request or as soon as possible in urgent cases.

the

For the purposes of the consultations referred to above,
5.
inform each other of any devel-
the Contracting Parties shall
opments which could affect
this
the proper functioning of
Agreement. This shall also include any relevant agreement
between one of the Contracting Parties and a third country.

Article 14

Application and suspension of application

Application of

this Agreement

(Economic and Financial Affairs)

1.
is conditional on the
adoption and implementation by the dependent or associated
territories of the Member States listed in the Report of the
Council
to the European
Council of Santa Maria de Feira of 19 and 20 June 2000 and
by the United States of America, Andorra, Liechtenstein, Swit-
zerland and San Marino, respectively, of measures identical or
equivalent to those contained in Council Directive 2003/48/EC
or in this Agreement, and providing for the same application
dates.

2.
The Contracting Parties shall decide, by common accord,
at least six months before the date referred to in Article 17,
whether the conditions set out in paragraph 1 are met with
regard to the dates of entry into force of the relevant measures
in the Member States of the European Community, the third
countries and dependent or associated territories concerned. If
the Contracting Parties do not decide that the conditions are
met, they shall, by common accord, adopt a new date for the
purposes of Article 17. To that end, the European Community
shall notify the Principality of Monaco of the implementation
by the Member States of
the
dependent or associated territories and the third countries
concerned of identical or equivalent measures.

the European Community,

Notwithstanding its institutional arrangements and subject
3.
to the above provisions,
the Principality of Monaco shall
implement this Agreement on the date referred to in Article
17 and notify this measure to the European Community.

3.
In view of the conclusion of bilateral agreements between
the Member States and the third countries subject to the same
obligations as the Principality of Monaco in the matter of the
taxation of savings income in the form of interest payments, the
Principality of Monaco will examine the scope and conditions
for the implementation of the principles laid down in Article 12
in the event of equivalent offences comparable in gravity to the

4.
Implementation of this Agreement or parts thereof may
be suspended by either Contracting Party with immediate effect
by means of notification to the other Contracting Party where
Council Directive 2003/48/EC 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.

21.1.2005

EN

Official Journal of the European Union

L 19/61

Either Contracting Party may also suspend implementation
5.
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 2 subsequently
ceases applying measures which are respectively equivalent or
identical to those of Council Directive 2003/48/EC. Suspension
of implementation shall not come into effect until two months
after notification. Application of the Agreement shall resume as
soon as the measures are reinstated.

Article 18

Claims and final provisions

1.
this
Termination or the total or partial suspension of
Agreement shall not affect claims by third parties in accordance
with Article 10.

2.
In such a case, the Principality of Monaco shall draw up a
final account before this Agreement ceases to apply and make a
final payment to each of the Member States of the European
Community.

Article 15

Other centres/Asian centres

Article 19

Territorial application

During the transitional period provided for in Council Directive
2003/48/EC, the European Community shall initiate discussions
with other major financial centres with a view to the adoption
and application by the relevant
jurisdictions of measures
equivalent to those to be applied in the Community.

This Agreement shall apply, on the one hand, to the territories
in which the Treaty establishing the European Community
applies and under the conditions laid down in that Treaty
and, on the other hand, to the territory of the Principality of
Monaco.

Article 16

Signing, entry into force and termination

Article 20

Annexes

This Agreement is concluded subject to its ratification or
1.
approval by the Contracting Parties in accordance with their
internal procedures. The Contracting Parties shall notify each
these procedures. The present
other of
the
Agreement shall enter
second month following the last notification.

into force on the first day of

the completion of

1.

The two Annexes shall form part of this Agreement.

2.
The list of the competent authorities in Annex 1 may be
modified by a simple notification to the other Contracting Party
by the Principality of Monaco as
the authority
the said Annex and by the
(a) of
mentioned in point
European Community as regards the other authorities.

regards

This Agreement shall remain in force until terminated by

2.
a Contracting Party.

The list of entities in Annex 2 may be modified by common
accord.

3.
Either Contracting Party may terminate this Agreement by
giving notice to the other. In that event, the Agreement shall
cease to have effect twelve months after the serving of notice.

Article 17

Implementing rules

Article 21

Languages

1.
This Agreement is drafted in duplicate in the following
languages: Czech, Danish, Dutch, English, Estonian, Finnish,
French, German, Greek, Hungarian, Italian, Latvian, Lithuanian,
Polish, Portuguese, Slovak, Slovenian, Spanish and Swedish, the
texts in each language being equally authentic.

to the provisions of Article 14,

the
Without prejudice
implement the laws, regulations and
Contracting Parties shall
administrative provisions necessary to allow the application of
this Agreement from 1 July 2005.

2.
The Maltese language version shall be authenticated by the
Contracting Parties on the basis of an Exchange of Letters. It
shall also be authentic, in the same way as for the languages
referred to in paragraph 1.

L 19/62

EN

Official Journal of the European Union

21.1.2005

EN FE DE LO CUAL, los plenipotenciarios abajo firmantes suscriben el presente Acuerdo.
NA DŮKAZ ČEHOŽ připojili níže podepsaní zplnomocnění zástupci k této smlouvě své podpisy.

TIL BEKRÆFTELSE HERAF har undertegnede befuldmægtigede underskrevet denne aftale.

ZU URKUND DESSEN haben die unterzeichneten Bevollmächtigten ihre Unterschriften unter dieses
Abkommen gesetzt.

SELLE KINNITUSEKS on täievolilised esindajad käesolevale lepingule alla kirjutanud.
ΣΕ ΠΙΣΤΩΣΗ ΤΩΝ ΑΝΩΤΕΡΩ, οι υπογράφοντες πληρεξούσιοι έθεσαν την υπογραφή τους κάτω από την
παρούσα συμφωνία.

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

EN FOI DE QUOI, les plénipotentiaires soussignés ont apposé leurs signatures au bas du présent accord.

IN FEDE DI CHE, i plenipotenziari sottoscritti hanno apposto la propria firma in calce al presente accordo.
TO APLIECINOT, attiecīgi pilnvarotas personas ir parakstījušas šo nolīgumu.
TAI PALIUDYDAMI, šį Susitarimą pasirašė toliau nurodyti įgaliotieji atstovai.

A FENTIEK HITELÉÜL az alulírott meghatalmazottak e megállapodást alább kézjegyükkel látták el.
B'XIEHDA TA' DAN, il-Plenipotenzjari hawn taħt iffirmati ffirmaw dan il-Ftehim.

TEN BLIJKE WAARVAN de ondergetekende gevolmachtigden hun handtekening onder deze overeenkomst
hebben geplaatst.
NA DOWÓD CZEGO niżej podpisani pełnomocnicy podpisali niniejszą Umowę.

EM FÉ DO QUE, os plenipotenciários abaixo assinados apuserem as suas assinaturas no final do presente
Acordo.
NA DÔKAZ ČOHO dolupodpísaní splnomocnení zástupcovia podpísali túto dohodu.
V POTRDITEV TEGA so spodaj podpisani pooblaščenci podpisali ta sporazum.

TÄMÄN VAKUUDEKSI allamainitut täysivaltaiset edustajat ovat allekirjoittaneet tämän sopimuksen.

TILL BEVIS HÄRPÅ har undertecknade befullmäktigade undertecknat detta avtal.

Hecho en Bruselas, el siete de diciembre del dos mil cuatro.
V Bruselu dne sedmého prosince dva tisíce čtyři.

Udfærdiget i Bruxelles, den syvende december to tusind og fire.

Geschehen zu Brüssel am siebten Dezember zweitausendundvier.

Kahe tuhande neljanda aasta detsembrikuu seitsmendal päeval Brüsselis.
Έγινε στις Βρυξέλλες, στις εφτά Δεκεμβρίου δύο χιλιάδες τέσσερα.

Done at Brussels on the seventh day of December in the year two thousand and four.

Fait à Bruxelles, le sept décembre deux mille quatre.

Fatto a Bruxelles, addì sette dicembre duemilaquattro.
Briselē, divi tūkstoši ceturtā gada septītajā decembrī.
Pasirašyta du tūkstančiai ketvirtų metų gruodžio septintą dieną Briuselyje.
Kelt Brüsszelben, a kettőezer negyedik év december hetedik napján.
Magħmul fi Brussel fis-seba' jum ta' Diċembru tas-sena elfejn u erbgħa.

Gedaan te Brussel, de zevende december tweeduizendvier.
Sporządzono w Brukseli dnia siódmego grudnia roku dwutysięcznego czwartego.

Feito em Bruxelas, em sete de Dezembro de dois mil e quatro.
V Bruseli siedmeho decembra dvetisícštyri.
Podpisano v Bruslju, dne sedmega decembra leta dva tisoč štiri.

Tehty Brysselissä seitsemäntenä päivänä joulukuuta vuonna kaksituhattaneljä.

Som skedde i Bryssel den sjunde december tjugohundrafyra.

21.1.2005

EN

Official Journal of the European Union

L 19/63

Por la Comunidad Europea
Za Evropské společenství
For Det Europæiske Fællesskab
Für die Europäische Gemeinschaft
Euroopa Ühenduse nimel
Για την Ευρωπαϊκή Κοινότητα

For the European Community
Pour la Communauté européenne
Per la Comunità europea
Eiropas Kopienas vārdā
Europos bendrijos vardu
az Európai Közösség részéről
Għall-Komunità Ewropea
Voor de Europese Gemeenschap
W imieniu Wspólnoty Europejskiej
Pela Comunidade Europeia
Za Európske spoločenstvo
za Evropsko skupnost
Euroopan yhteisön puolesta
På Europeiska gemenskapens vägnar

Pour la Principauté de Monaco

L 19/64

EN

Official Journal of the European Union

21.1.2005

LIST OF COMPETENT AUTHORITIES OF THE CONTRACTING PARTIES

ANNEX I

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

(a)

in the Principality of Monaco:
representative,

le Conseiller de Gouvernement pour les Finances et l'Economie or an authorised

(b)

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

(c)

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

(d)

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

(e)

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

(f)

in the Republic of Estonia: Rahandusminister or an authorised representative,

(g)

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

(h)

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

(i)

(j)

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

in Ireland: The Revenue Commissioners or their authorised representative,

(k)

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

(l)

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

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

(n)

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

(o)

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 luxemburgeois,

(p)

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

(q)

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

(r)

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

(s)

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

(t)

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

(u)

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

(v)

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

(w)

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

(x)

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

(y)

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

(z)

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 European Union and European Community
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 Principality of Monaco by the Secretary-General of the
Council of the European Union, and which shall apply to this Agreement.

21.1.2005

EN

Official Journal of the European Union

L 19/65

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’:

ANNEX II

ENTITIES WITHIN THE EUROPEAN UNION:

Belgium

— Vlaams Gewest

— Région wallonne

— Région de Bruxelles-Capitale (Brussels Hoofdstedelijk Gewest)

— Communauté française

— Vlaamse Gemeenschap

— Deutschsprachige Gemeinschaft

Spain

— Xunta de Galicia

— Junta de Andalucía

— Junta de Extremadura

— Junta de Castilla-La Mancha

— Junta de Castilla y León

— Gobierno Foral de Navarra

— Govern de les Illes Balears

— Generalitat de Catalunya

— Generalitat de València

— Diputación General de Aragón

— Gobierno de las Islas Canarias

— Gobierno de Murcia

— Gobierno de Madrid

— 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

L 19/66

EN

Official Journal of the European Union

21.1.2005

— Instituto de Crédito Oficial

— Instituto Catalán de Finanzas

— Instituto Valenciano de Finanzas

Greece

— Оργανισμός Тηλεπικοινωνιών Ελλάδος (Greek Telecommunications Organisation)

— Оργανισμός Σιδηροδρόμων Ελλάδος (Greek Railways Organisation)

— Δημόσια Επιχείρηση Ηλεκτρισμού (Public Power Corporation)

France

— 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

— 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 (capital city of Warsaw)

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

— Agencja Nieruchomości Rolnych (Agricultural Property Agency)

21.1.2005

EN

Official Journal of the European Union

L 19/67

Portugal

— Região Autónoma da Madeira (Autonomous Region of Madeira)

— Região Autónoma dos Açores (Autonomous Region of the Azores)

— Communes

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 AND UNDERTAKINGS:

— European Bank for Reconstruction and Development

— European Investment Bank

— 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 (CAF)

— Eurofima

The provisions of Article 11 of the Agreement 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. the entity is considered to be a public entity according to national criteria;

2. this public entity is a non-market producer which administers and finances a group of activities, principally providing
non-market goods or services intended for the benefit of the community and which are effectively controlled by public
administration;

3. this public entity is a large and regular issuer of debt securities;

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

up clauses.

L 19/68

EN

Official Journal of the European Union

21.1.2005

MEMORANDUM OF UNDERSTANDING

between the European Community and the Principality of Monaco

When an 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, hereinafter referred to as
‘the Directive’, was concluded,
the European Community and the Principality of Monaco signed this
Memorandum of Understanding supplementing the Agreement.

If either Contracting Party finds that significant differences in the implementation of exchanges of infor-
mation mean that the Agreement would not be applied in an evidently equitable manner, the Contracting
immediately hold consultations with a view to determining the arrangements necessary to
Parties shall
establish equal treatment. The European Commission shall
immediately report to the Council on these
consultations and propose the measures necessary to restore equal treatment. In the interim, any new
request for information under Article 12 of this Agreement which is of the same kind as that which
gave rise to the application of this paragraph will be examined during the consultations.

Should a significant difference be detected between the scope of Council Directive 2003/48/EC and that of
this Agreement, in particular with regard to Articles 4 and 6 of the Agreement, the Contracting Parties shall
immediately consult each other in accordance with Article 13(1) of the Agreement with a view to ensuring
that the measures laid down by the Agreement remain equivalent.

The signatories of this Memorandum of Understanding declare that they consider the Agreement referred to
in the first paragraph and this Memorandum of Understanding to provide an acceptable and balanced
arrangement
therefore
the agreed measures in good faith and will not act unilaterally in such a way as to
implement
undermine this arrangement without due cause.

that can be considered as safeguarding the interests of

the Parties. They will

Once it has been established that the prudential rules and supervisory measures applicable to the Mone-
gasque operators concerned are such as to guarantee the smooth operation of the Internal Market in the
sectors in question, the European Community is prepared to examine with the Government of the Princi-
pality of Monaco conditions conducive to the development of trade between Monaco and the Community
in certain financial instruments and insurance services. Thus, and in accordance with the foreign policy
position adopted by the Community with regard to similar requests in the past, any possible agreement
would have to be based on the adoption and application by the Principality of Monaco of the present and
future Community acquis in the sectors concerned. It is also likely that other rules, both present and future,
relevant to the smooth operation of the Internal Market in the sectors in question, for instance competition
and tax rules, would have to be applied by the Principality of Monaco.

The signatories of this Memorandum of Understanding note that the definition of tax fraud, under the
Agreement between the European Community and the Principality of Monaco providing for measures
equivalent to those laid down in the Directive, is solely for the relevant purposes of taxation of savings.

Drawn up at Brussels on 7 December 2004 in duplicate in the Czech, Danish, Dutch, English, Estonian,
Finnish, French, German, Greek, Hungarian,
Italian, Latvian, Lithuanian, Polish, Portuguese, Slovak,
Slovenian, Spanish and Swedish languages, each of these languages being equally authentic.

The Maltese language version shall be authenticated by the signatories on the basis of an Exchange of
Letters. It shall also be authentic,
in the same way as for the languages referred to in the preceding
paragraph.

21.1.2005

EN

Official Journal of the European Union

L 19/69

Por la Comunidad Europea
Za Evropské společenství
For Det Europæiske Fællesskab
Für die Europäische Gemeinschaft
Euroopa Ühenduse nimel
Για την Ευρωπαϊκή Κοινότητα

For the European Community
Pour la Communauté européenne
Per la Comunità europea
Eiropas Kopienas vārdā
Europos bendrijos vardu
az Európai Közösség részéről
Għall-Komunità Ewropea
Voor de Europese Gemeenschap
W imieniu Wspólnoty Europejskiej
Pela Comunidade Europeia
Za Európske spoločenstvo
za Evropsko skupnost
Euroopan yhteisön puolesta
På Europeiska gemenskapens vägnar

Pour la Principauté de Monaco