(1)

The Agreement between the European Union and the Principality of Andorra on the automatic exchange of financial account information to improve international tax compliance (1) (‘the Agreement’) has enhanced mutual assistance in tax matters between the Contracting Parties and improved international tax compliance.

(2)

Important changes to the Common Reporting Standard (CRS) of the Organisation for Economic Cooperation and Development were approved at international level on 26 August 2022 and were incorporated into Union law by means of Council Directive (EU) 2023/2226 (2), which amended Council Directive 2011/16/EU (3).

(3)

On 21 May 2024, the Council authorised the Commission to open negotiations with the Principality of Andorra (‘Andorra’) for an amendment of the Agreement to reflect the changes to the CRS approved at the international level. The negotiations were successfully concluded with the initialling of the Amending Protocol to the Agreement between the European Union and the Principality of Andorra on the automatic exchange of financial account information to improve international tax compliance (‘the Amending Protocol’).

(4)

The Amending Protocol expands the scope of reporting for the CRS to include new digital financial products, such as Specified Electronic Money Products and Central Bank Digital Currencies, while simultaneously introducing more-detailed reporting requirements and strengthened due-diligence procedures. It also updates the references to the data protection legislation of the Contracting Parties.

(5)

The text of the Amending Protocol, which is the result of the negotiations, duly reflects the negotiating directive issued by the Council.

(6)

Therefore, the Amending Protocol should be signed on behalf of the Union and the Joint Declarations attached to the Amending Protocol should be approved.

(7)

The European Data Protection Supervisor was consulted in accordance with Article 42(1) of Regulation (EU) 2018/1725 of the European Parliament and of the Council (4).

(8)

Commission Decision 2010/625/EU (5) stated that, for all the activities falling within the scope of Directive 95/46/EC of the European Parliament and of the Council (6), Andorra is considered as providing an adequate level of protection of personal data transferred from the Union. The Commission report of 15 January 2024 to the European Parliament and the Council on the first review of the functioning of the adequacy decisions adopted pursuant to Article 25(6) of Directive 95/46/EC confirms that Andorra continues to provide an adequate level of protection for personal data transferred from the Union,