Directive 2003/48/EC

Directive 2003/48/EC is a European Union law aimed at improving tax transparency regarding savings income, particularly interest payments, across member states. It requires EU countries to exchange information about interest earned by individuals to help combat tax evasion. The directive allows foreign governments to either share this information or impose a withholding tax on interest payments. Essentially, it ensures that people cannot hide income from taxes by moving their savings to different countries within the EU, promoting fair tax practices and financial accountability.