Europaudvalget 2025
KOM (2025) 0376
Offentligt
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EUROPEAN
COMMISSION
Brussels, 10.7.2025
COM(2025) 376 final
2025/0199 (NLE)
Proposal for a
COUNCIL DECISION
on the conclusion, on behalf of the Union, of the Amending Protocol to the Agreement
between the European Union and the Swiss Confederation on the automatic exchange of
financial account information to improve international tax compliance
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EXPLANATORY MEMORANDUM
1.
•
CONTEXT OF THE PROPOSAL
Reasons for and objectives of the proposal
The present proposal concerns the conclusion of the Amending Protocol to the Agreement
between the European Union and the Swiss Confederation (Switzerland) on the automatic
exchange of financial account information to improve international tax compliance
1
(the
Agreement).
The Agreement provides the legal basis for the reciprocal automatic exchange of financial
account information between the EU Member States and Switzerland, in accordance with the
Common Reporting Standard (CRS) developed by the Organisation for Economic Co-
operation and Development (OECD). The same standard is implemented within the European
Union under Council Directive 2014/107/EU
2
(DAC 2 – the first amendment to Directive
2011/16/EU
3
on administrative cooperation in the field of taxation – DAC)
4
.
Important changes to the CRS were approved at international level on 26 August 2022
5
and
will apply from 1 January 2026. Council Directive (EU) 2023/2226
6
(DAC8) already
implemented these changes within the European Union and will also apply from 1 January
2026.
The changes extend the scope of the CRS to ensure the coverage of electronic money products
and central bank digital currencies. They also further improve the due diligence procedures
and reporting outcomes, with a view to increasing the usability of CRS information for tax
administrations and limiting burdens on financial institutions, where possible.
To ensure that the automatic exchange of financial account information between EU Member
States and Switzerland is aligned with, and continues to take place in accordance with, the
updated CRS from 1 January 2026, it was necessary to negotiate and agree corresponding
amendments to the Agreement.
In May 2018, Regulation (EU) 2016/679 on the protection of natural persons with regard to
the processing of personal data and on the free movement of such data, and repealing
Directive 95/46/EC (General Data Protection Regulation “GDPR”)
7
started to apply.
To ensure that the Agreement reflects these updates, it was necessary to remove the references
to the repealed Directive 95/46/EC and replace these references with references to Regulation
(EU) 2016/679. Simultaneously, the references to the Swiss national data protection
legislation were also updated. Furthermore, these amendments reflect the continued
application of the EU Adequacy Decision concerning Switzerland
8
and the Opinion released
on 8 July 2015 on the agreement by the European Data Protection Supervisor (EDPS)
9
.
1
2
3
4
5
6
7
8
OJ L 385, 29.12.2004, p. 30 to 42. OJ L 333, 19.12.2015, p. 12 to 49.
OJ L 359 of 16.12.2014, p. 1 to 29.
OJ L 64 of 11.3.2011, p. 1 to 12.
OJ L 359, 16.12.2014, p.1-29.
https://www.oecd.org/en/publications/international-standards-for-automatic-exchange-of-information-in-tax-
matters_896d79d1-en.html,
pages 62 to 102.
Council Directive (EU) 2023/2226 of 17 October 2023 amending Directive 2011/16/EU on administrative
cooperation in the field of taxation (OJ L, 24.10.2023)
9
OJ L119 of 5 May 2016, p. 1 to 88.
Decision 2000/518/EC of 26 July 2000 pursuant to Directive 95/46/EC on the adequate protection of
personal data provided in Switzerland.
https://edps.europa.eu/sites/edp/files/publication/15-07-08_eu_switzerland_en.pdf
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Finally, in the absence of an existing legal framework that provides for mutual assistance in
the collection of direct and indirect taxes between the European Union and Switzerland, the
Member States sought the inclusion of such provisions by way of corresponding amendments
to the Agreement.
The negotiated provisions ensure the recovery of VAT claims, to avoid non-taxation and
combat tax fraud in such a manner that closely aligns with the related provisions of the
agreement between the European Union and Norway on administrative cooperation,
combatting fraud and recovery of claims in the field of VAT
10
(the EU-Norway agreement).
The latter agreement in turn is based on Directive 2010/24/EU
11
for recovery assistance
between Member States of the European Union (EU Recovery Directive). Simultaneously, the
negotiated agreement contains a commitment to explore mutual assistance in recovering other
tax claims within a four-year period following the first day of January after the signature of
this Amending Protocol.
A Council decision authorising the opening of negotiations for the amendment of the
Agreement concerning the automatic exchange of financial account information to improve
international tax compliance between the European Union and the Swiss Confederation was
adopted on 21 May 2024
12
.
Several rounds of negotiations were held and a provisional agreement was reached in
December 2024. Subsequently, the draft text of the Amending Protocol was initialled by the
Chief negotiators on 1 April 2025.
The Council has consistently been informed about the progress in the negotiations in the
Working Party on Tax Questions and in the High-Level Working Party. In particular, the text
of the draft Amending Protocol was shared and discussed with the Member States ahead of its
initialling. The initialled text was shared with the European Parliament, together with
information about the intended provisional application.
The Commission considers that the objectives set out by the Council in its negotiating
directives have been attained and that the negotiated text is acceptable to the Union.
The signing, on behalf of the Union, of the Amending Protocol to the Agreement between the
European Union and the Swiss Confederation on the automatic exchange of financial account
information and mutual assistance for the recovery of claims to improve international tax
compliance took place on xxxx.
•
Consistency with existing policy provisions in the policy area
The amendment of the Agreement was negotiated in line with the comprehensive negotiating
directives adopted by the Council on 21 May 2024.
The negotiated Amending Protocol ensures that the existing agreement between the European
Union and Switzerland remains aligned with Union legislation in the same field, notably the
DAC as amended by DAC8.
DAC8 includes, among other amendments, the latest changes to the OECD CRS. In the light
of the close relationship in this field between the European Union and Switzerland, it is
10
11
12
OJ L 195, 1.8.2018, pp. 3-22
OJ L 84, 31.3.2010, p. 1–12
Council Decision (EU) 2024/1489 of 21 May 2024 authorising the opening of negotiations for the
amendment of the Agreements concerning the automatic exchange of financial account information to
improve international tax compliance between the European Union and the Swiss Confederation, the
Principality of Liechtenstein, the Principality of Andorra, the Principality of Monaco and the Republic
of San Marino, respectively
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important to strengthen along the same lines the administrative cooperation with their tax
authorities in the field of automatic exchange of financial account information. The timely
update of the Agreement ensures the smooth and effective continuation of this administrative
cooperation beyond 1 January 2026.
The amendments to the Agreement also take account of the Union policies in the field of the
fight against money laundering and terrorist financing, because the Customer Due Diligence
activities to be performed by Financial Institutions, in view of collecting the financial account
information to be exchanged under the Agreement, will be substantially aligned with those
that the same Financial Institutions have to apply as obliged entities under the European
Union legal framework in the fight against money laundering and terrorist financing.
The negotiated Amending Protocol provides a legislative framework for mutual assistance
between the European Union and Switzerland for the recovery of VAT claims. This
framework closely aligns with the EU-Norway agreement, which in turn is similar to the EU
Recovery Directive. Therefore, this initiative deepens Member States cooperation with
Switzerland in line with the EU acquis.
The Amending Protocol also takes account of the Union policies in the field of respect of
fundamental rights, notably on protection of personal data in the case of the outflow of this
data to non-EU and non-EEA countries.
2.
•
LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
Legal basis
The present proposal to the Council is submitted pursuant to Articles 113 and 115 of the
Treaty on the Functioning of the European Union (TFEU), in conjunction with
Article 218(6) TFEU.
Given that the main objectives and components of the Amending Protocol to the Agreement
between the European Union and the Swiss Confederation on the automatic exchange of
financial account information to improve tax compliance are to improve administrative
cooperation in the area of direct and indirect taxation, including the recovery of VAT claims,
the substantive legal basis are Articles 113 and 115 TFEU.
Article 3(2) TFEU provides that, in addition to the areas of exclusive Union competence listed
in Article 3(1) TFEU, the Union shall “also have exclusive competence for the conclusion of
an international agreement when its conclusion is provided for in a legislative act of the Union
or is necessary to enable the Union to exercise its internal competence, or in so far as its
conclusion may affect common rules or alter their scope”.
Under the case law of the Court of Justice, an agreement may affect common rules or alter
their scope when it falls within an area which is already largely covered by such rules
13
.
As far as the parts concerning the CRS are concerned, the Agreement itself includes, in
Article 8, a provision requiring the Contracting Parties to consult each other on each occasion
when an important change is adopted at OECD level to any of the elements of the CRS. The
Article also provides that following these consultations, the Agreement may be amended by
means of a protocol between the Contracting Parties. As important changes to the CRS were
approved within the OECD on 26 August 2022, and in accordance with the Union’s exclusive
competence stemming from the existing Agreement, the Amending Protocol implements all
changes that are necessary to reflect the corresponding changes to the CRS. The
13
Opinion 3/15 of the Court, ECLI:EU:C:2017:114, paragraph 118 and the case law quoted therein
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implementation of those changes within the Union has been provided for by means of Council
Directive (EU) 2023/2226.
The inclusion of provisions on mutual assistance that ensure the recovery of VAT claims, to
avoid non-taxation and combat tax fraud, also falls within the Union’s exclusive competence,
which is based on the EU Recovery Directive.
In accordance with the Treaties, the Commission makes a proposal for the conclusion of an
agreement on behalf of the Union.
•
Proportionality
The amending protocol respects the principle of proportionality and does not go beyond what
is necessary to meet the objective of updating the Agreement namely to incorporate the
changes to the Common Reporting Standard that shall take effect from 1 January 2026. These
amendments will enable the Member States to continue the automatic exchange of financial
account information with Switzerland in an uninterrupted manner, and in a manner that aligns
with the new requirements of the CRS, as already incorporated in the DAC8.
Simultaneously, the amendments of the Agreement do not go beyond what is necessary to
meet the objective of providing a common framework for mutual assistance in the recovery of
VAT claims between the European Union and Switzerland. These amendments will enable
the Member States’ authorities responsible for the collection of VAT claims to cooperate with
the Swiss tax authorities in a similar manner that they cooperate between themselves in the
EU based on the EU acquis.
•
Choice of the instrument
Article 218(6) TFEU provides that the Commission or the High Representative of the Union
for Foreign Affairs and Security Policy shall submit proposals to the Council, which shall
adopt a decision on the conclusion of an international agreement. Given the subject matter of
the envisaged agreement, it is appropriate for the Commission to submit a proposal to that
effect.
3.
•
RESULTS OF IMPACT ASSESSMENTS
Impact assessment
According to tool 7 of the Better Regulation
14
, an impact assessment is not needed, inter alia,
when the Commission has little or no choice in the matter.
This condition is satisfied in the present case as the amendments to the existing Agreements
with respect to the automatic exchange of financial account information fully align with the
changes to the CRS that were agreed at the OECD level and already incorporated into EU law
by means of the DAC8. As regards the amendments with respect to mutual assistance in the
recovery of VAT claims, they align as much as possible with the relevant provisions of the
EU-Norway agreement which, in turn, replicates the EU Recovery Directive. Finally, the
changes on data protection, are merely aimed at updating references to the EU and Swiss data
protection legislation.
14
https://ec.europa.eu/info/sites/default/files/br_toolbox-nov_2021_en_0.pdf
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•
Fundamental rights
The envisaged amending protocol to the Agreement will respect the key values of the
European Union as established in Article 2 of the Treaty on the Functioning of the European
Union and the Charter of Fundamental Rights of the European Union.
4.
BUDGETARY IMPLICATIONS
The proposal has no implication for the EU budget.
5.
•
OTHER ELEMENTS
Detailed explanation of the specific provisions of the proposal
The envisaged amendments cover the following points:
1.
Amendments to ensure that the automatic exchange of financial account information
between Member States and Switzerland under the existing Agreement is aligned
with and continues to take place in accordance with the updated CRS from 1 January
2026
The foreseen amendments expand the scope of reporting to include new digital financial
products, such as Specified Electronic Money Products and Central Bank Digital Currencies.
Simultaneously and with the aim of improving the reliability and use of the exchanged
information, the amendments introduce more detailed reporting requirements and
strengthened due diligence procedures.
The amendments also contain provisions to ensure an efficient interaction between the CRS
and the separate Crypto-Asset Reporting Framework (CARF) developed by the OECD
15
.
These provisions allow to limit instances of duplicative reporting, while maintaining a
maximum amount of operational flexibility of Reporting Financial Institutions that are also
subject to obligations under the CARF.
Finally, the amendments reflect the new optional category of Non-Reporting Financial
Institutions for genuine non-profit Entities operating for the public benefit (Qualified Non-
Profit Entity), which is provided in the Commentaries to the update to the CRS. Switzerland
has exercised this option and is in the process of setting up the legal and administration
mechanisms to ensure that any Entity claiming the status of a Qualified Non-Profit Entity is
confirmed to fulfil the relevant conditions laid down in the above-mentioned Commentaries.
On the contrary, EU Member States have note exercised this option, in line with Council
Directive (EU) 2023/2226.These amended reporting and automatic exchange of information
requirements are provided for within Title 1 and Title 4. They will provisionally apply from 1
January 2026.
2.
Amendments to include legal provisions that provide for assistance in the recovery of
VAT claims
The foreseen amendments establish a new legal framework for mutual assistance to ensure the
recovery of VAT claims between the Member States and Switzerland. Simultaneously, Article
4s commits the parties to explore the extension of this mutual assistance to other tax claims
within a four-year period following the first day of January after the signature of this
Amending Protocol.
15
https://www.oecd.org/en/publications/international-standards-for-automatic-exchange-of-information-in-tax-
matters_896d79d1-en.html,
pages 8 to 61.
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As mentioned, the negotiated framework remains closely aligned to the related provisions of
the EU-Norway agreement, which in turn is based on the EU Recovery Directive. It includes,
inter alia, provisions on notification of documents, recovery and precautionary measures,
exchange of information. Moreover, Article 4p establishes a Joint Committee composed of
representatives of the contracting parties, that shall ensure the proper functioning and
implementation of the Title dealing with tax recovery. There are only a few deviations from
the EU-Norway agreement, notably in Article 4g (conditions governing a request for
recovery), Article 4m (limits to the requested authority’s obligations) and in Article 4o
(costs).
These amendments are provided for within a new Title 2. This inaugural framework between
the Member States and Switzerland for the recovery of VAT claims will apply from the first
day of January of the first year, after the entry into force of the Amending Protocol with
regard to tax claims arising after the first day of January after the signature of the Amending
Protocol. The provision concerning the establishment of the Joint Committee (Article 4p) will
provisionally apply from 1 January 2026.
3.
Update to the legal reference on data protection legislation
All references to Directive 95/46/EC have been replaced with references to the GDPR.
Simultaneously, the legal reference to the national data protection legislation of Switzerland
has been updated to the Federal Act on Data Protection of 25 September 2020 and its
ordinance of 31 August 2022.
•
Text of the Agreement and notifications
The text of the Amending Protocol to the Agreement is submitted to the Council together with
this proposal.
In accordance with the Treaties, it is for the Commission to proceed, on behalf of the Union,
to make the notification provided for in Article 2(1) of the Amending Protocol, in order to
express the consent of the Union to be bound by the Agreement.
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2025/0199 (NLE)
Proposal for a
COUNCIL DECISION
on the conclusion, on behalf of the Union, of the Amending Protocol to the Agreement
between the European Union and the Swiss Confederation on the automatic exchange of
financial account information to improve international tax compliance
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular
Articles 113 and 115, in conjunction with Article 218(6), second subparagraph, point (b) and
the second subparagraph of Article 218(8) thereof,
Having regard to the proposal from the European Commission,
Having regard to the consent of the European Parliament
1
,
Whereas:
(1)
The Agreement between the European Union and the Swiss Confederation on the
automatic exchange of financial account information to improve international tax
compliance
2
(‘the Agreement’) has enhanced mutual assistance in tax matters between
the Contracting Parties and improved international tax compliance.
Important changes to the Common Reporting Standard (CRS) were approved at
international level on 26 August 2022
3
and have been introduced in Union legislation
with the amending of Council Directive 2011/16/EU by Council Directive (EU)
2023/2226
4
.
Therefore, the Agreement needs to be amended to ensure that the automatic exchange
of financial account information between EU Member States and the Swiss
Confederation is aligned with, and continues to take place in accordance with, the
updated CRS from 1 January 2026. The Agreement also needs to be amended to
provide the Member States with new mutual assistance provisions for the recovery of
value added tax claims.
The text of the Amending Protocol of the Agreement between the European Union and
the Swiss Confederation on the automatic exchange of financial account information
to improve international tax compliance (‘the Amending Protocol to the Agreement’),
which is the result of the negotiations, duly reflects the negotiating directive issued by
the Council.
(2)
(3)
(4)
1
2
OJ C , , p. .
OJ L 385, 29.12.2004, p. 30 to 42. OJ L 333, 19.12.2015, p. 12 to 49.
https://www.oecd.org/en/publications/international-standards-for-automatic-exchange-of-information-in-tax-
matters_896d79d1-en.html,
pages 62 to 102.
Council Directive (EU) 2023/2226 of 17 October 2023 amending Directive 2011/16/EU on administrative
cooperation in the field of taxation (OJ L, 24.10.2023
http://data.europa.eu/eli/dir/2023/2226/oj
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4
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(5)
In accordance with Council Decision (EU) XXXX
5
, the Amending Protocol to the
Agreement on the automatic exchange of financial account information to improve
international tax compliance was signed on XXXX, subject to its conclusion at a later
date, and will be partly provisionally applied from 1 January 2026, pending its entry
into force.
The Amending Protocol to the Agreement between the European Union and the Swiss
Confederation on the automatic exchange of financial account information to improve
international tax compliance which is the subject of this decision should be approved.
The European Data Protection Supervisor was consulted in accordance with Article
42(1) of Regulation (EC) No 2018/1725 of the European Parliament and of the
Council,
(6)
(7)
HAS ADOPTED THIS DECISION:
Article 1
The Amending Protocol to the Agreement between the European Union and the Swiss
Confederation on the automatic exchange of financial account information to improve
international tax compliance is hereby approved
6
.
Article 2
This Decision shall enter into force on the day following that of its publication in the
Official
Journal of the European Union.
Done at Brussels,
For the Council
The President
5
Council Decision (EU)
xxx
on the signing, on behalf of the Union, of the Amending Protocol to the
Agreement between the European Union and the Swiss Confederation on the automatic exchange of financial
account information and mutual assistance for the recovery of claims to improve international tax compliance
(OJ
L XXX).
6
The text of the Amending Protocol to the Agreement is published in OJ L, […].
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