DAC 6 / MDR Radar

Issue 5

A new wave of reporting rules will be effective in the European Union on 1 July 2020, with retroactive effect to 25 June 2018.

These new requirements were introduced by the latest amendments to the EU Directive on Administrative Cooperation in the field of taxation, commonly known as DAC 6.

It will soon be required to disclose all cross-border arrangements/structures meeting the criteria and hallmarks of DAC 6.

Although the implementing deadline of 31 December 2019 has already passed, only 21 countries have implemented these rules into their domestic legislation, while 6 countries are still at the implementation drafting stage. Greece has not yet unveiled its proposal to introduce the DAC 6 package into its legislative landscape.

On 24 January 2020, the European Commission sent formal notices to Belgium, Cyprus, Czech Republic, Estonia, France, Greece, Italy, Latvia, Luxembourg, Poland, Portugal, Romania, Spain, Sweden and the United Kingdom regarding the implementation of DAC 6. If these countries do not follow up on these formal notices in the next two months, the Commission should issue a reasoned opinion. However, there is no information published that reveals which aspects of the DAC 6 implementation the Commission is not satisfied with specifically.

On 26 June 2020, a directive amending the DAC 6 rules was published in the Official Journal. It provides Member States with an option to defer the time limits for filing and exchanging the following information by up to six months: (i) automatic exchanges of information on financial accounts of which the beneficiaries are tax residents in another Member State; and (ii) reportable cross-border tax planning arrangements. Depending on how the COVID-19 pandemic evolves, the amended directive also allows the Council to extend the deferral period once for a maximum of three months.

Useful links:

Global Tax alert on tax intermediaries directive

Luxembourg Tax Alert on DAC 6 implementation

Text of the Council Directive (EU) 2018/822 of 25 May 2018 relating to reportable cross-border arrangements (DAC6)

Understanding DAC 6 - EU tax directive 2018/822 and its effects on cross-border tax arrangements

DAC 6 law voted by the Luxembourg parliament

Text of the Council Directive (EU) 2020/876 of 24 June 2020 addressing the urgent need to defer certain time limits for the filing and exchange of information in the field of taxation because of the COVID-19 pandemic

Previous editions

Issue 1 (6 December 2019)

Issue 2 (17 January 2020)

Issue 3 (10 March 2020)

Issue 4 (20 May 2020)

 

Source: Deloitte Tax

 

 Source: Deloitte Tax

 

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