[17713]
June 29, 2004
TO: INTERNATIONAL MEMBERS No. 40-04
INTERNATIONAL OPERATIONS ADVISORY COMMITTEE No. 26-04
TAX MEMBERS No. 34-04
RE: APPLICATION DATE OF EU TAXATION OF SAVINGS DIRECTIVE DELAYED
The European Union has decided to delay the application date of the Taxation of
Savings Directive from January 1, 2005 until July 1, 2005. As you know, the Savings Directive
generally is intended to provide a mechanism for a Member State of the European Union to
collect tax on income in the form of interest paid on savings products purchased by its citizens
in another EU member state.1
Although negotiations with third countries to adopt equivalent measures have generally
concluded, the Council decided that Switzerland was not in a position to apply equivalent
measures by the original effective date. On June 28, 2004, the Council voted to delay the date of
application of the Directive by six months.2
Jennifer S. Choi
Associate Counsel
1 See Memorandum to International Members No. 22-03 and Tax Members 33-03 [16157] (June 9, 2003) and
Memorandum to International Operations Advisory Committee No. 26-03 [16178] (June 9, 2003).
2 The Council’s conclusions are available at,
http://ue.eu.int/ueDocs/cms_Data/docs/pressData/en/envir/81264.pdf