Under the proposal, dividends, capital gains, all other forms of financial income and account balances, would be added to the list of categories which are subject to automatic information exchange within the EU.
Algirdas emeta, commissioner for taxation, said that this paves the way for the EU to have the most comprehensive system of automatic information exchange in the world.
"With today’s proposal, Member States will be better equipped to assess and collect the taxes they are due, while the EU will be well positioned to push for higher standards of tax good governance globally. It will be another powerful weapon in our arsenal to lead a strong attack against tax evasion."
The measures are timetabled take effect from January 1 2015 by being added to the existing Savings Tax Directive, which already ensure that governments pass tax relevant data of non-resident individuals to the authorities where they reside.
In December 2012, the European Commission presented an Action Plan for a more effective EU response to tax evasion and avoidance and last month the ECOFIN Council welcomed the Action Plan and requested the extension of automatic exchange of information at EU and global level.
To read about Luxembourg pushing for ‘clarification’ before signing EU tax deal, click here.
To read about why double taxation agreements might be bad for your wealth, click here.