The latest measure follows a wave of announcements from the OECD BEPS project to combat corporate tax avoidance and improve global tax transparency.

The agreement was reached at a meeting of Economic and Financial Affairs ministers in Luxembourg.

The directive is one of a number of initiatives aimed at preventing corporate tax avoidance.  

It will require member states to exchange information automatically on advance cross-border tax rulings, as well as advance pricing arrangements.

Member states receiving the information will be able to request further information where appropriate.