The Council of the European Union has adopted Annexes to the proposal for a recast Directive on administrative cooperation in taxation, setting out detailed reporting and due diligence rules for financial account information that Member States must apply for automatic exchange. The Annexes, published on 24 June 2026, specify the data to be reported by financial institutions, including account holder identification, account balances, and gross amounts of interest, dividends, and proceeds from asset sales. They also outline procedures for reviewing pre-existing accounts, with enhanced review for high-value accounts due by 31 December 2016 and lower-value accounts by 31 December 2017. New accounts require self-certification upon opening. Pre-existing entity accounts with balances not exceeding USD 250,000 as of 31 December 2015 are exempt from review until the balance exceeds that threshold. The rules aim to strengthen tax transparency and combat tax evasion across Member States. Financial institutions will bear the compliance costs of implementing these procedures, while tax authorities gain access to more comprehensive data. The recast Directive is expected to proceed to the European Parliament for consultation before final adoption.
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