WHAT IS DAC6 REPORTING?
The EU Directive 2018/822/EU, known as DAC6, is introducing new reporting obligations of cross border arrangements that have the features of transactions that might bring tax advantages.
Therefore, any transaction involving two countries where at least one is in the EU, will need to be assessed in order to determine whether it is reportable or not regardless it is intra-group or with third parties.
WHEN BUSINESSESS SHOULD SUBMIT THE DAC6 REPORTS?
In most of the EU contries the DAC6 reporting deadline where deferred until (i) 28 February 2020 for those arrangements where the implementation started between 25 June 2018 and 30 June 2020, (ii) 30 January 2021 for those arrangements where the implementation started between 1 July 2020 and 31 December 2020.
For the arrangements where implementation starts after 31 December 2020, taxpayers will only have 30 days to report from the triggering event.
WHAT BUSINESSES SHOULD DO ABOUT DAC6 REPORTING?
Failure to comply with DAC6 could mean facing significant sanctions under local regulations in European Union countries and reputational risks for individuals, businesses and intermediaries.
Therefore businesses need to understand the importance and implications of DAC6 reporting on their business and to act in due time to ensure compliance or at least to prepare adequate defense documentation.
CAN I MANAGE THE DAC6 REPORTING INTERNALLY?
DAC6 is a a complex subject with requires more than everything else coordination among various stakeholders.
Even more important, DAC6 requires that the person performing the DAC6 assessments has had adequate exposure to international tax planning, transfer pricing and other areas that can enable efortless identification of cross-border arrangements.
Knowledge Center
- ORIGINAL EU DAC6 DIRECTIVE EXPLAINED
- NATIONAL DAC6 LEGISLATION PROVISIONS
- TAX AUTHORITIES DAC6 PRACTICAL GUIDELINES
- TAX AUTHORITIES DAC6 OFFICIAL FORMS
- DAC6 SEMINARS AND CONFERENCES PRESENTATIONS
In 2018, EU issued the Directive 2018/822/EU, known as DAC6, which is introducing new reporting obligations of cross border arrangements that have certain characteristics (i.e. broadly, reporting of those transactions whose expected benefit is a tax advantage). The final purpose of these new obligations and of the directive itself is increasing the transparency and fairness in taxation.
Therefore, any transaction involving two countries where one is in the EU will need to be assessed in order to determine whether it is reportable or not regardless it is intra-group or with third parties.
Each EU country transposed the original EU DAC6 Directive into its national provisions mostly by copy-pasting the text of the Directive, defining some elements with regard to penalties and, in some cases, including some additional elements.
As such, each country in the EU has largely the same national provisions as in the original EU DAC6 Directive but there may be some slight alterations. Below you will find links to the DAC6 national provisions of each country within the EU.
The novel EU DAC6 Directive is built based on a catch-all principle. As a consequence, the EU DAC6 Directive is very thorough and intentionaly vague in many aspects.
As a consequence, the national Tax Authorities across the EU are not just transposing the text of the EU DAC6 Directive, but they also issue additional guidance with their own interpretations over the unclear topics. Find below links to the guidelines issued by the Tax Authorities in each EU country.
In 2018, EU issued the Directive 2018/822/EU, known as DAC6, which is introducing new reporting obligations of cross border arrangements that have certain characteristics (i.e. broadly, reporting of those transactions whose expected benefit is a tax advantage). The final purpose of these new obligations and of the directive itself is increasing the transparency and fairness in taxation.
Therefore, any transaction involving two countries where one is in the EU will need to be assessed in order to determine whether it is reportable or not regardless it is intra-group or with third parties.
As DAC6 experts, we shared our DAC6 knowledge across a number of events held in the past.
Download below the video recordings, presentations support and other materials used during these events.
You need to assess
your transactions from a DAC6 perspective, particularly if
Cross-border arrangements
New / with modified circumstances
After 25 June 2018
Tax optimization schemes in place
Payment of dividends while still having to reimburse loans
Cross-border business restructurings
Stock option plan in place
Standardized contracts
Other various situations
