Savings Tax Directive

The Savings Tax Directive is a European Union regulation aimed at ensuring transparency and preventing tax evasion on savings income, such as interest from bank accounts. It requires EU member states to share information about interest payments made to foreign residents with their home countries. This helps governments collect taxes owed on savings income and promotes fairness in the tax system across borders. The directive encourages individuals to declare their savings income honestly, reducing the incentive for tax avoidance through hidden accounts.