To prevent potentially aggressive tax planning models, the European Union (EU) has tightened the transparency and disclosure requirements for aggressive cross-border tax planning with DAC 6. The reporting obligation may also affect Swiss-based individuals or companies due to their transactions with EU member states. Failure to meet the reporting obligation can lead to significant sanctions.
Original reporting deadlines
In general, since 25 June 2018 all cross-border tax arrangements covered by DAC 6 are subject to reporting requirements. Tax arrangements made between 25 June 2018 and 30 June 2020 (old cases) originally had to be reported by 31 August 2020. Tax arrangements made after 1 July 2020 (new cases) should have been reported within 30 days (i.e., for the first time by 31 July 2020). The first exchange of information between tax authorities should take place on 31 October 2020.
Adjustment of the reporting deadlines due to COVID-19
Due to COVID-19, the EU Commission proposed in May 2020 to extend the reporting deadlines. The proposal made by the EU Commission was approved by the EU Parliament and confirmed by the EU Council. Therefore, new deadlines apply at the EU level for cross-border tax arrangements.
According to the new regulation, new cases must be reported by 31 January 2021 at the latest. All old cases must be reported by 28 February 2021 at the latest. The first exchange of information between tax authorities is postponed until 30 April 2021.
However, not all EU member states have implemented the adjustment of the reporting deadline. Austria, Finland, and Germany have decided not follow the proposal and insist on the original reporting deadlines.
The current reporting deadlines of each EU member state are summarized here. (PDF, 162 Kb)
