DAC6 – Proposal for postponing reporting deadlines

On 8 May 2020, the European Commission published a proposal to amend the Directive on Administrative Cooperation (2011/16/EU), last amended by the DAC6 Directive, and therefore defer the deadlines of the reporting obligation due to the COVID-19 pandemic burden by three months. The proposal is expected to appear on the agenda of the next ECOFIN meeting on 19 May 2020.

Until now, the provisions of the EU-Directive (EU) 2018/822 on reportable cross-border arrangements (DAC6) are scheduled to enter into force on 1 July 2020. This results in the obligation for intermediaries and relevant taxpayers to file the first DAC6 reports within 30 days, i.e. by 31 July 2020. Arrangements with an implementation date of their first step during the retroactive period (between 25 June 2018 and 1 July 2020) must be disclosed by 31 August 2020. The national tax authorities are then scheduled to exchange information, for the first time, by 31 October 2020.

According to the proposal, the DAC6 due dates would be postponed as follows:

  • the beginning of the above-mentioned period of 30 days, from 1 July to 1 October 2020. Reportable cross-border arrangements which become reportable in the period between 1 July 2020 and 30 September 2020 will then have to be reported within 30 days as from 1 October 2020;
  • the deadline for disclosing the arrangements regarding the retroactive period from 31 August to 30 November 2020;
  • the first periodic report regarding marketable arrangements, from 31 October 2020 to 31 January 2021;
  • the first exchange of information by the EU Member States, from 31 October 2020 to 31 January 2021.

The EU Commission envisages a further postponement of the deadlines by a maximum of three further months if exceptional circumstances, such as renewed or continued lockdown measures, persist during the deferral period.

Provided the proposed Directive is adopted, Member States will need to adopt and publish, by 31 May 2020 at the latest, their laws, regulations and administrative provisions necessary to comply with the proposed Directive. Hence, the provisions would apply from 1 June 2020.

The scope of reporting would not change, only the deadlines for reporting would be postponed.

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