Automatic Exchange Of Information For Tax Purposes

What Is The Automatic Exchange Of Information (AEI)?

The AEI is a mechanism enabling the national tax authorities to collect the taxes that are due on income and capital that their residents have in other jurisdictions.

The countries collect information on the income earned in their territory by non-residents, which is then transmitted automatically to the authorities, where the individual or the legal entity is tax resident.

The OECD developed a Global Standard of automatic exchange of information, which aims to ensure full transparency and cooperation between the tax authorities, aiming to fight tax evasion. The Global Standard was agreed by the G20 Finance Ministers in February 2013.