On 8 May 2020, the European Commission released a directive proposal amending the EU Directive on Administrative Cooperation to address the urgent need for deferring certain time limits for the filing and exchange of information in the field of taxation due to the COVID-19 pandemic. The proposal grants 3 additional months for reporting and exchanging information under the mandatory disclosure regime applicable to tax intermediaries (DAC6) and 3 additional months for exchanging information under the Common Reporting Standards (CRS).
New DAC6 deadlines
- The reporting of arrangements implemented between 25 June 2018 and 30 June 2020 is postponed from 31 August 2020 to 30 November 2020.
- The 30-day reporting period applicable to reportable cross-border arrangements implemented between 1 July 2020 and 30 September 2020 will start on 1 October 2020.
- The first quarterly reporting of marketable arrangements shall be performed by 31 January 2021.
- The first automatic exchange of information between EU Member States will take place by 31 January 2021 instead of 31 October 2020.
New CRS deadlines
- Exchange of information between EU Member States in relation to calendar year 2019 or other appropriate time period will take place within 12 months (instead of the ordinary 9-month time frame) following the end of calendar year 2019 or the other appropriate time period.
Additional deadline extensions to come?
Considering the current uncertainty around the evolution of the COVID-19 pandemic, the proposal empowers the EU Commission to adopt a delegated act extending the period of deferral for filing and exchanging information for a maximum of 3 additional months in case the exceptional circumstances of severe risks for public health caused by the COVID-19 pandemic persist and Member States have to either implement new or continue existing lockdown measures.
The proposal has to be adopted by EU Member States by 31 May 2020 at the latest and will apply as from 1 June 2020.
Introducing DAC6Connect©, ensuring compliance with DAC6 obligations
We have developed an IT solution to identify transactions likely to be reported within the framework of DAC6, to help taxpayers and intermediaries comply with their DAC6 reporting obligations by allowing them to individually assess whether a cross-border arrangement is reportable and, where applicable, to allocate the reporting obligation onto one designated intermediary. Find out more here: www.dac6connect.com