Eurofast would like to inform you that on the 25th of June 2018, the EU Council Directive 2018/822 (commonly referred to as "DAC6") was published in the Official Journal of the EU.
DAC6 amends EU Council Directive 2011/16/EU on administrative cooperation in the field of taxation as regards to the mandatory exchange of information in relation to reportable cross-border arrangements. The full text of the DAC6 is available here .
DAC6 requires EU-based intermediaries (including Banks, Legal and Audit Firms), or taxpayers themselves, to draw up a declared cross-border analysis applicable within the scope of DAC6, that they have marketed, organized or managed. The intermediaries are also required to notify and declare such analysis to their domestic tax authority.
On June 26th, 2020, the new EU Council Directive 2020/876 of June 24th, 2020, amended Directive 2011/16/EU to address the urgent need to defer certain time limits for the filing and exchange of information in the field of taxation ever since the COVID-19 pandemic, was published in the Official Journal of the EU.
The implementation of DAC6 is retroactive and also concerns declarable cross-border arrangements post June 25th, 2018, with the following reporting deadlines:
- Declarable cross-border arrangement that has been carried out from 25th June 2018 to 30th June 2020, will be submitted by 28th February, 2021.
- Declarable cross-border arrangements made from July 1st, 2020 until December 31st, 2020, will be submitted within 30 days starting from January 1st, 2021.
- Declarable cross-border arrangement carried out from January 1st, 2021 onwards, will be submitted within 30 days from the date it becomes available for implementation, or is ready for implementation or the first step towards its implementation has been taken (whichever occurs first).
Note that the first periodic report on general purpose regulations will be submitted by April 30th, 2021.
For further information relating to the DAC-6 implementation in Cyprus, please contact Constantinos Pavlou, Advocate/Legal Consultant.
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