May 12, 2020
DAC6 Reporting Requirement for All Cross-Border Tax Arrangements Postponed
Posted by COVID-19 Rapid Response Team
DAC6 is an EU Council Directive 2011/16 in relation to reporting requirements for all cross-border tax arrangements. It has been in force since June 25, 2018, promoting transparency and fairness in taxation. DAC6 applies to cross-border tax arrangements that meet one or more specified characteristics (hallmarks) and that concern either more than one EU country or an EU country and a non-EU country.
It mandates a reporting obligation for these tax arrangements, if in scope, no matter whether the arrangement is justified according to national law. It applies to companies with EU nexus and intermediaries such as tax advisers, lawyers and accountants that design, promote or provide assistance in regard to certain cross-border arrangements. When the intermediaries are bound by professional secrecy, or in the absence of intermediaries, the reporting obligations are generally shifted to the taxpayer.
DAC6 requires taxpayers to file information with their national tax authority within 30 days of the first of the following dates:
- on the day after the reportable cross-border arrangement is made available for implementation; or
- on the day after the reportable cross-border arrangement is ready for implementation; or
- when the first step in the implementation of the reportable cross-border arrangement has been made; or
- (only when an intermediary is involved) when the intermediary provided aid, assistance or advice.
Because of COVID-19, the reporting dates have been extended by 3 months. The extension:
- Changes the date for the beginning of the 30-day period for reporting cross-border arrangements from July 1, 2020, to October 1, 2020.
- Changes the date for the reporting of cross-border arrangements that became reportable from June 25, 2018, to June 30, 2020, (the so-called “historical” arrangements) from August 31, 2020, to November 30, 2020.
- Changes the date for the first exchange of information on reportable cross-border arrangements from October 31, 2020, to January 31, 2021.
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