EU Savings Directive

As part of our service we want to keep our customers informed about relevant changes in European tax legislation (European Savings Directive) that will most likely come into force as per July 1st, 2005. This new tax regulation may have a consequence for the disclosure on earnings on your savings investments.

The new Savings Directive covers all European Union citizens and regulates the reporting on income obtained from investments in countries other than the country where you habitually reside, respectively where are an official tax-resident. It should ensure, that within the EU the taxation on investments is done on equal terms. The Savings Directive only affects individuals, not corporate entities, and the obligation to provide information is only focused on some investment products, specifically income from savings accounts, certain fixed-income securities and investment funds in which more than 40% is invested in fixed-income securities.

Due to rigorous banking confidentiality Austria, Belgium and Luxemburg are not participating in this information exchange. In those counries withholding tax is applicable.

According to the new EU-Regulation, any financial institution within the EU where you maintain any such account is obliged to provide the tax authorities of the country where you are a tax-resident with details of the income obtained from such account. These tax authorities will then pass on this information to the tax authorities in the country where you are a tax-resident.

 Accordingly, we have to inform you that, without further notice to the contrary, from July 2005, relevant details that the bank may have to disclose to the local tax authorities in The Netherlands/Germany will be shared by them with the tax authorities where you are a tax-resident.

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