Directive 2003/48 - Taxation of savings income in the form of interest payments - Main contents
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Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments| Legal instrument | Directive |
|---|---|
| Number legal act | Directive 2003/48 |
| Original proposal | COM(2001)400  |
| CELEX number i | 32003L0048 |
| Document | 03-06-2003 |
|---|---|
| Publication in Official Journal | 26-06-2003; Special edition in Latvian: Chapter 09 Volume 001,Special edition in Slovak: Chapter 09 Volume 001,Special edition in Romanian: Chapter 09 Volume 002,OJ L 157, 26.6.2003,Special edition in Croatian: Chapter 09 Volume 001,Special edition in Lithuanian: Chapter 09 Volume 001,Special edition in Czech: Chapter 09 Volume 001,Special edition in Estonian: Chapter 09 Volume 001,Special edition in Slovenian: Chapter 09 Volume 001,Special edition in Maltese: Chapter 09 Volume 001,Special edition in Hungarian: Chapter 09 Volume 001,Special edition in Polish: Chapter 09 Volume 001,Special edition in Bulgarian: Chapter 09 Volume 002 |
| Effect | 16-07-2003; Entry into force Date pub. + 20 See Art 19 |
| End of validity | 31-12-2015; Partial end of validity See 32015L2060 |
| Transposition | 31-12-2003; At the latest See Art 17.1 |
26.6.2003 |
EN |
Official Journal of the European Union |
L 157/38 |
COUNCIL DIRECTIVE 2003/48/EC
of 3 June 2003
on taxation of savings income in the form of interest payments
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular Article 94 thereof,
Having regard to the proposal from the Commission (1),
Having regard to the opinion of the European Parliament (2),
Having regard to the opinion of the European Economic and Social Committee (3),
Whereas:
(1) |
Articles 56 to 60 of the Treaty guarantee the free movement of capital. |
(2) |
Savings income in the form of interest payments from debt claims constitutes taxable income for residents of all Member States. |
(3) |
By virtue of Article 58(1) of the Treaty Member States have the right to apply the relevant provisions of their tax law which distinguish between taxpayers who are not in the same situation with regard to their place of residence or with regard to the place where their capital is invested, and to take all requisite measures to prevent infringements of national law and regulations, in particular in the field of taxation. |
(4) |
In accordance with Article 58(3) of the Treaty, the provisions of Member States' tax law designed to counter abuse or fraud should not constitute a means of arbitrary discrimination or a disguised restriction on the free movement of capital and payments as established by Article 56 of the Treaty. |
(5) |
In the absence of any coordination of national tax systems for taxation of savings income in the form of interest payments, particularly as far as the treatment of interest received by non-residents is concerned, residents of Member States are currently often able to avoid any form of taxation in their Member State of residence on interest they receive in another Member State. |
(6) |
This situation is creating distortions in the capital movements between Member States, which are incompatible with the internal market. |
(7) |
This Directive builds on the consensus reached at the Santa Maria da Feira European Council of 19 and 20 June 2000 and the subsequent Ecofin Council meetings of 26 and 27 November 2000, 13 December 2001 and 21 January 2003. |
(8) |
The ultimate aim of this Directive is to enable savings income in the form of interest payments made in one Member State to beneficial owners who are individuals resident in another Member State to be made subject to effective taxation in accordance with the laws of the latter Member State. |
(9) |
The aim of this Directive can best be achieved by targeting interest payments made or secured by economic operators established in the Member States to or for the benefit of beneficial owners who are individuals resident in another Member State. |
(10) |
Since the objective of this Directive cannot be sufficiently achieved by the Member States, because of the lack of any coordination of national systems for the taxation of savings income, and can therefore be better achieved at Community level, the Community may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Directive confines itself to the minimum required in order to achieve those objectives and does not go beyond what is necessary for that purpose. |
(11) |
The paying agent is the economic operator who pays interest to or secures the payment of interest for the immediate benefit of the beneficial owner. |
(12) |
In defining the notion of interest payment and the paying agent mechanism, reference should be made, where appropriate, to Council Directive... |
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