Gov.im uses cookies to make the site simpler. Find out more about cookies

European Savings Directive (EUSD)

From 1 July 2011, automatic exchange of information on interest payments made to individuals (beneficial owners) resident in EU Member States, will take place in all cases.

Responsibility for reporting information rests with the Paying Agent. A Paying Agent is a person who is established in the Isle of Man who makes interest payments in the course of his business or profession e.g. a bank.

Paying agents are required to submit the information to be exchanged as an XML file compatible with the standard format for the exchange of information used within the EU; FISC 153. The current version of the FISC 153 specification is available for download at the top right of this page together with example files in xml.

Background

The EUSD came into force in 2005 and provides for automatic exchange of information on savings income. Its ultimate aim is to enable savings income in the form of interest payments made in one participating country to individuals resident in an EU Member State to be made subject to effective taxation in accordance with the laws of that Member State.

Although the Isle of Man is not part of the European Union it agreed to introduce measures equivalent to the EUSD with effect from 1 July 2005.

The Isle of Man implemented the EUSD by entering into bilateral agreements with all EU member States.

Practice Notes

See PN 168/11 European Directive on the Taxation of Savings Income - New Reporting Procedures and Related Matters for Paying Agents.

Guidance Notes

See the Guidance Notes section for GN31 on the application of the European Savings Directive for Isle of Man Paying Agents and GN31a on the application of the European Savings Directive for Isle of Man Paying Agents with effect from 1 July 2011.

Legislation

  • Statutory Document 150/05 Income Tax (Retention of Tax and Exchange of Information) (Temporary Taxation) Order 2005
  • Statutory Document 378/05 Income Tax (Retention of Tax and Exchange of Information) Regulations 2005
  • Statutory Document 291/10 Income Tax (Exchange of Information) Temporary Taxation Order

Agreements

Please see the model agreement - Agreement on the Taxation of Savings Income between [Guernsey, Isle of Man, Jersey] and [EU member state that is to apply automatic exchange of information]

Forms

The 'Retention Tax Deducted Form' to be completed by paying agents.

All documents are available on request by contacting the Division:

Income Tax Division

Government Offices

Bucks Road

Douglas

Isle of Man

IM1 3TX

Telephone:+44 1624 685400

Email:Send Email

 

Did you find what you were looking for?
Back to top