Gouvernement Princier de Monaco
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Agreements on Tax Matters

Maintaining economic development of Monaco while respecting international regulations. 

Monaco has an enviable model of economic development that respects the international requirements on tax transparency and fairness advocated by the OECD.

 

The Principality of Monaco is pursuing the policy set out by H.S.H. Prince Albert II on transparency and exchange of information for tax purposes. Like the countries of the G20, Monaco has for several years played an active role in the international movement to strengthen standards and increase exchange of information between countries.  

Monaco's regulations comply with the highest international standards on tax matters, in order to secure its economic development model in an environment of increased international cooperation.

Broad recognition from peers at the OECD Global Forum 

Indeed, at the behest of His Serene Highness Prince Albert II, Monaco has been committed, since 13 March 2009, to concluding agreements on the exchange of information which comply with the standards developed by the OECD.

Before the G20 Summit in Pittsburgh, the Prince’s Government had reached agreements on tax transparency with twelve countries. Since 23 September 2009, the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes has classified Monaco within the group of countries which "have substantially implemented the internationally recognised standards in the area of tax".

Steps successfully undertake since 2009

This commitment is embodied by the signature of agreements on cooperation in tax matters with numerous States and ongoing commitment towards continuing improvement within the framework of the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes , which brings together 121 countries and jurisdictions to debate the many issues relating to transparency and exchange of information.

This drive, based on a review of each country by the other member countries, led to the assessment of Monaco by its peers in 2010 (Phase 1 ) and 2012 (Phase 2 ).

The resulting review reports recorded the progress made by Monaco through the development of its domestic legislation to comply with OECD and international standards, and took note of the application of these provisions by the Monegasque Government to guarantee the exchange of information for tax purposes on request.

Late 2013: Monaco receives positive assessment during latest Global Forum in Djakarta

Following these reviews, the latest OECD Global Forum report, ratified during the sixth annual meeting in November 2013 in Jakarta, judged Monaco to be  "largely compliant " with international standards for tax transparency, alongside countries such as Germany and the United States of America, an acknowledgment of the efforts the country has made over a number of years.

For more information on Monaco’s recognition at the OECD Global Forum, click here

The signature of bilateral agreements

To date, Monaco has signed 32 bilateral agreements (31 of which are in force) and discussions are underway with other countries to develop bilateral relationships. 

To see the details of bilateral agreements, click here .

OECD Multilateral Convention on Assistance in Tax Matters

Monaco is engaged in the OECD Convention on Mutual Administrative Assistance in Tax Matters  the aim of which is to increase the exchange of tax information between countries, specifically on demand and automatically, in order to better combat tax evasion and tax fraud.

Following the vote on Tuesday 29 November 2016 at the Public Session on the Laws approving ratification by the National Council, the Minister of State, Mr. Serge Telle, accompanied by the Minister of Finance and Economy, Mr. Jean Castellini, deposited the instrument of ratification of the Convention on Mutual Administrative Assistance in Tax Matters, signed by H.S.H. Prince Albert II of Monaco, with the Secretary General of the Organisation for Economic Co-operation and Development (OECD), Mr. Angel Gurría, at the Château de la Muette, the OECD's headquarters in Paris on Wednesday 14 December 2016.
 
To date, 107 jurisdictions participate in the Convention, including all the G20 countries, all the OECD countries, the leading financial centres and a growing number of developing countries. Of these 107 jurisdictions, the Convention has now entered into force in 91 countries, including Monaco

This Convention, which was signed on 13 October 2014 by the Minister of Foreign Affairs and Cooperation, Mr. José Badia, will take effect in Monaco three months after its ratification.

As a reminder, the Principality of Monaco is committed to implementing the automatic exchange of information on financial accounts; exchanges will begin in 2018 of information collected in 2017.

Furthermore, Monaco is one of the signatories of the Multilateral Competent Authority Agreement for the Automatic Exchange of Financial Account Information, which clarifies the Convention and will take effect at the same time.

Additionally, the "common reporting standard" provides that tax administrations collect information from financial institutions concerning the accounts of their clients who are non-resident in the Principality and transmit it automatically to the tax authorities of their State of residence, preserving the rights of taxpayers while guaranteeing the confidential treatment of their exchanged data.

The FAQ on automatic exchange of information for tax purposes can be found here .

The Amending Protocolof the "Agreement between the European Community and the Principality of Monaco providing equivalent measures to those of the Council Directive 2003/48/CE"

The Minister of State, Mr. Serge Telle, accompanied by the Minister of Finance and Economy, Mr. Jean Castellini, the current President of the Council of the European Union, Mr. Peter Kazimir, and the European Commissioner for Economic and Financial Affairs, Taxation and Customs, Mr. Pierre Moscovici, signed the Amending Protocol "Agreement between the European Community and the Principality of Monaco providing equivalent measures to those of the Council Directive 2003/48/CE, on 12 July 2016 in Brusselsl".

Following the vote on Tuesday 29 November 2016 at the Public Session on the Law approving ratification by the National Council, the instrument of ratification of the Protocol, signed by H.S.H. Prince Albert II of Monaco, was deposited with the Secretariat of the Council of the European Union on 9 December 2016.

Thus, this Protocol repeals and replaces the 2005 agreement between Monaco and the EU on the taxation of savings and brings the new Agreement into line with the common reporting standard, in order to enable automatic exchange of information between EU member states and Monaco.

For the Principality of Monaco, this signature is part of an ongoing process of transparency and is a further example of international anti-fraud tax policy, in the framework of the commitment made to reach agreements on the exchange of information that respects the international standards developed by both the European Union and the Global Forum of the OECD.

In the future, the entry into force of the protocol, after ratification, will result in a new phase – from 2018 (and all the subsequent years, in the nine months that follow the end of the calendar year to which it relates), Monaco will exchange information automatically on an annual basis with each of the Member States, with regard to their respective residents, on each Reportable Account in Monaco and, in the case of Monaco, on each Reportable Account of a Member state.

Monaco and the member States will also be able to exchange, on request, information that is likely to be relevant for the application of the provisions of the Agreement, following the same procedure as that already applied on the basis of existing OECD bilateral agreements.

All these commitments undertaken by the Principality of Monaco follow on from the wish expressed by H.S.H. Prince Albert II to increase transparency in tax matters, and all the measures implemented since 2009.

http://en.gouv.mc/Policy-Practice/Monaco-Worldwide/Agreements-on-Tax-Matters