The European Union’s Savings Tax Directive is on schedule for introduction on July 1 2005, it emerged following Tuesday’s meeting of EU fina...

The European Union’s Savings Tax Directive is on schedule for introduction on July 1 2005, it emerged following Tuesday’s meeting of EU finance ministers in Brussels.

Luxembourg's Economy Minister Jeannot Krecke stated that "we have good reason to believe all will be in place for July 1" in a press conference after the meeting.

The European jurisdictions of Monaco and Liechtenstein have not yet written the appropriate legislation into domestic law, although they have pledged to do so in time for the deadline and UK and Netherlands dependent territories must have legislation in place by May 30 to meet the deadline.

The new directive allows tax authorities of EU member states and other key jurisdictions to exchange information on savings income with an individual's home state. Switzerland, the Channel Islands and the Isle of Man, have opted out of exchanging information and will apply a withholding tax on interest income for a transitional period.