TAX COMPLIANCE AND AUTOMATIC EXCHANGE OF INFORMATION
For several years, the Principality of Monaco has been part of the international tax transparency movement by adhering, in particular, to the following three conventions:
- The Convention on Mutual Administrative Assistance in Tax Matters (also known as “MAAC OECD”) signed on 13 October 2014,
- The Multilateral Competent Authority Agreement concerning the Automatic Exchange of Financial Account Information (also known as “MCAA OECD”) signed on 15 December 2015, and
- The Protocol amending the Agreement between the European Community and the Principality of Monaco providing for measures equivalent to those contained in the Council Directive 2003/48/EC, signed on 12 July 2016.
Accession to these international agreements was then ratified and their provisions, including the Common Reporting Standard (“CRS”), were transposed into Monegasque law by Act No. 1.436, No. 1.437 and No. 1.438 of 2 December 2016, completed by Act No. 1.444 and No. 1.445 of 19 December 2016, all accompanied in turn by their various applicable Sovereign Orders and Ministerial Decrees.
The adoption of all these texts has had the effect of making the automatic exchange of tax information applicable to Monaco, based on the CRS, as of 01.01.2017.
On this basis, the first automatic exchanges of information were carried out by 30 June 2018 at the latest concerning the declarable data for the year 2017 and they are now continuing from year to year.
The declarable accounts are those whose holders and/or those who are in control have their tax residence located in a country with which the Principality of Monaco has decided to activate the above mentioned international agreements (countries also known as “Reportable Jurisdictions”). The number of these countries (several dozen) continues to increase over the years, illustrating therefore the participation of the Principality of Monaco in the international movement for transparency and tax compliance.