Whereas:
- 1.Article 17(2) of Directive 2003/48/EEC (“the Directive”) of the Council of the European Union (“the Council”) on taxation of savings income provides that Member States shall adopt and publish the laws, regulations and administrative provisions necessary to comply with the Directive from January 1, 2005, provided that:
- –the Swiss Confederation, the Principality of Liechtenstein, the Republic of San Marino, the Principality of Monaco and the Principality of Andorra from that same date apply measures equivalent to those contained in the Directive, in accordance with agreements entered into by them with the European Community, following unanimous decisions of the Council;
- –all agreements or other arrangements are in place, which provide that all the relevant dependent or associated territories apply from that date automatic exchange of information in the same manner as is provided for in Chapter II of the Directive, or, during the transitional period defined in Article 10, apply a withholding tax on the same terms as are contained in Articles 11 and 12;
- 2.On 19 July 2004 (Council Decision 2004/587/EC) the Council amended the date of application of the Directive from 1 January 2005 to 1 July 2005;
- 3.On 24 June 2005, the Council:
- –took note that the 25 Member States, 5 European countries (Andorra, Liechtenstein, Monaco, San Marino, Switzerland), 3 Crown Dependencies (Guernsey, Isle of Man, and Jersey), and 7 dependent or associated territories in the Caribbean (Netherlands Antilles, Aruba, Anguilla, British Virgin Islands, Cayman Islands, Montserrat, Turks & Caicos Islands) have confirmed that they apply the agreed savings tax measures from 1 July 2005 (green light);
- –adopted the “Green light note” (Doc. 10038/05 FISC 69) which triggered the application, by all 40 treaty partners concerned, of the agreed savings tax measures from 1 July 2005;
- –authorised the Council Secretariat to share the “Green light note” and the information concerning the bilateral savings tax agreements and the Savings Tax Directive with the relevant third countries and territories and the public.”;
- 4.Curaçao is not within the EU fiscal territory but is, for purposes of the Directive, an EU associated territory and as such is not bound by the terms of the Directive. However, the Kingdom of the Netherlands, in respect of Curaçao, on the basis of an arrangement between Curaçao and the Netherlands, is willing to enter into agreements with the Member States of the EU to apply a withholding tax on the same terms as are contained in Articles 11 and 12 of the Directive during the transitional period defined in Article 10 thereof, and, after expiration of the transitional period, to apply automatic exchange of information in the same manner as is provided for in Chapter II of the Directive;
- 5.The arrangement between Curaçao and the Netherlands, as stated in the previous paragraph, is contingent on the adoption by all the Member States of the laws, regulations and administrative provisions necessary to comply with the Directive, and on the requirements of Article 17 of the Directive being met;
- 6.Through this Convention, Curaçao agrees to apply the provisions of the Directive, subject to what is otherwise agreed herein, in regard of Beneficial Owners that are residents of the Republic of Croatia and the Republic of Croatia agrees to apply the Directive in regard to Beneficial Owners that are residents of Curaçao.
The Government of the Kingdom of the Netherlands, in respect of Curaçao, and the Government of the Republic of Croatia, desiring to conclude a Convention which enables savings income in the form of Interest Payments made in one of the Contracting States to Beneficial Owners who are individuals resident in the other Contracting State, to be made subject to effective taxation in accordance with the laws of the latter Contracting State, in conformity with the Directive and with the intentions of the Contracting States as laid down herein above, have agreed as follows:
