Scanning Special June 2014

the scope of automatic exchange of tax informa- tion agreements to EU member states. The 2011 Council Directive on Administrative Cooperation in the Field of Taxation (the 2011 Directive) then pro- vides that any tax information which is shared with a third country (i.e. the US) must be shared to any other EU member state as well (“most favoured nation clause”). The Directive 2011/16/EU on the administrative cooperation in the field of taxation provides differ- ent types of exchange of information as well as other forms of administrative cooperation. These forms of exchange of information encompass: (i) an exchange of information upon request; (ii) a mandatory and automatic exchange of infor- mation; and (iii) a spontaneous exchange of information. The Directive 2011/16/EU was already partly implemented by the Law dated 29 March 2013 which introduced in domestic legislation the ex- change of information upon request, the sponta- neous exchange of information and certain forms of administrative cooperation. What’s in there? The law of 26 March 2014 implements Article 8 of the Directive 2011/16/EU in domestic legislation. In particular, it introduces the mandatory and au- tomatic exchange of information for five different kinds of income, to be determined based on the legislation of the Member State exchanging the information: (i) income from employment; (ii) director’s fees; (iii) life insurance products not covered by other EU legal instruments on exchange of informa- tion and other such measures; (iv) pensions; and (v) ownership of and income from immovable property. In Luxembourg, data related to employment in- come, director’s fees and pension can be easily collected and are not protected by the banking se- crecy. As a result, these three kinds of income can be easily exchanged. What’s next? The law of 26 March 2014 applies to the exchange of information relating to taxable periods from 1 January 2014 onwards. Categories of income that are still not concerned by the mandatory and automatic exchange of in- formation are dividends, capital gains and royal- ties. These three categories of income may be in- cluded in the scope of the exchange of information as from 2017 or earlier depending on evolution of discussions at OECD or European level. THE LAW OF 26 MARCH 2014 IS AVAILABLE HERE.

Scanning This publication is produced by Legal and Compliance teams of CACEIS with the kind support of Communication teams and Group Business Development Support teams.

Editors Gaëlle Kerboeuf, Group General Counsel @ Marie-Andrée Bonnet, Compliance and Regulatory Watch Manager (France) @ Permanent Editorial Committee Gaëlle Kerboeuf, Group General Counsel Marie-Andrée Bonnet, Compliance and Regulatory Watch Manager (France) Chantal Slim, Head of Legal (CACEIS Bank France) Eliane Meziani-Landez (Head of Fund Structuring France) Emilie Zaracki (Legal Officer) Ana Vazquez, Head of Fund Structuring and Domicile (Luxembourg) Véronique Bastin, Head of Compliance (Luxembourg) Stefan Ullrich, Head of Legal (Germany) Costanza Bucci, Legal and Compliance Manager (Italy) Mireille Mol, Legal and Compliance Manager (Netherlands) Laura Guzzi, Legal Manager (Belgium) Helen Martin, Head of Legal (Ireland) Sarah Perrier, Head of Legal and Compliance (Switzerland) Philippe Naudé, Marketing and Communication Specialist (France) Arianna Arzeni, Head of Group Business Development Support

Additional Contributors Eliane Jacquet @ Joëlle Préhost @

Design Sylvie Revest, CACEIS, Communicatons

Photos credit Yves Maisonneuve, Yves Colllinet, CACEIS, Fotolia

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This publication is provided by CACEIS from sources believed to be reliable. The present publication is not intended as an offer to sell or a commercial solicitation and may be amended at any time by CACEIS. Information contained in the present newsletter are not a substitute to legal, taxation or investment consultation or advice from an appropriately qualified profes- sional. CACEIS does not warrant the accuracy and completeness of this newsletter, nor endorse or make any interpretation about its content. In no event will CACEIS be liable for any damages whatsoever arising out of the use of, or reliance on the content of this newsletter. Unauthorized used or distribution without the prior written permission of CACEIS is prohibited.

Scanning - June 2014 - page 11