Monaco has ratified OECD’s Convention on Mutual Administrative Assistance in Tax Matters, an agreement aimed to curb cross-border tax evasion.
The convention mandates the country to implement the standard for automatic exchange of financial account information in tax matters, which was developed in 2014 by the OECD and G20 countries.
The standard requires jurisdictions to obtain information from their financial institutions and automatically share that data with other jurisdictions every year.
It also requires the country to implement automatic exchange of country-by-country reports under the base erosion and profit shifting (BEPS) norms pioneered by OECD/G20.
The BEPS project aims to close the gaps in existing international rules that allow multinational enterprises to artificially shift profits to low or no tax environments.
The convention will be effective for Monaco from 1 April 2017, with the automatic exchange of financial account data to start from 2018.