The introduction of the new European Union (EU) Mandatory Disclosure rules (DAC 6) aims to implement procedural compliance requirements for intermediaries and taxpayers to disclose 'potentially aggressive tax planning arrangements' by intermediaries or taxpayers to the relevant tax authority. Subsequently, all tax authorities in the EU will then exchange received reportable disclosures amongst one another on a quarterly basis.
There will be differences in approach by different EU Member States. Therefore, it is important that intermediaries and taxpayers understand how they may be affected and put in place procedures to identify whether their cross-border transactions fall within one of the hallmarks. Below we have summarised the key points by country.
| Country | Final Legislation | Date legislation in effect | Deferral option applied | Deferral period | Scope | Reporting format | Reporting language | Annual Reporting Obligation for Taxpayer | Fines | Legal Professional Privilege applicable? | Key contact |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Austria | Yes | 01-Jul-20 | TBC | - | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation. | Web-based form, paper-based report | Official language or English | No | One-off fine of max EUR 50,000 | Law firms, tax advisors, auditors, notaries | werner.leiter@at.gt.com |
| Belgium | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | Electronic / XML file | Official languages and English | No | One-off fine of max 100,000 | No | frederik.degraeve@be.gt.com |
| Bulgaria | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | - | - | Yes | Up to 5,000 BGN per violation, doubled in case of repeated offsense in the same category | All consultants with a legal obligation. Lawyers are excluded due to the professional secret. | emarinova@bg.gt.com / vbakalov@bg.gt.com |
| Croatia | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | Electronic / XML file | Official language and English | Yes | From 2.000 kuna up to 20.000 kuna for a legal representative or company and also for responsible person in legal representative, ie a physical person that represents the company. | Law firms, tax advisors | bozica.bukovski@hr.gt.com |
| Cyprus | No | Expected during 2020 | Expected | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation. | Electronic / XML file | Most probably official language and English | Waiting for the law | Based on draft legislation one-off fee max EUR 20,000 | Law firms | george.karavis@cy.gt.com |
| Czech Republic | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on administrative Cooperation, excluding VAT, customs duties or excise duties | Electronic / XML file | Official language | No | One-off fee max CZK 500,000 | Law firms, tax advisors, auditors, notaries | jiri.zoubek@cz.gt.com |
| Denmark | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | Web-based form | Official language or English | No | Minimum EUR 6,700 low category or EUR 54,000 top category depending on company size | Law firms (only information that would incriminate the taxpayer) | laerke.hesselholt@dk.gt.com |
| Estonia | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | Digitally signed report | Official language | No | One-off fee max EUR 3,300 | Law firms, tax advisors, auditors | kristjan.jarve@ee.gt.com |
| Finland | Yes | 01-Jul-20 | No | - | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | Electronic / txt file, paper form for individuals | Official language or English | No | Max EUR 15,000 per arrangement | Law firms | jan-erik.rae@fi.gt.com |
| France | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | Web-based form | Official language | Yes | Max of EUR 100,000 per year | Law firms, tax advisors, auditors, accountants, banks | afrede@avocats-gt.com |
| Germany | Yes | 01-Jul-20 | TBC | - | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | Electronic / XML file, web-based form | Official language | Yes | One-off fee max EUR 25,000 | Law firms, tax advisors, auditors | christoph.kneip@wkgt.com |
| Gibraltar | Yes | 01-Jul-20 | Yes | 3 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | Electronic / XML file | English | No | One-off fee max GBP 3,000 | Any consultants with a legal obligation | marisa.perera@gi.gt.com |
| Greece | Yes | 01-Jul-20 | Yes | 6 months | Cross-border arrangements involving more than one Member States, or a Member State and a third country, that fall within one of a number of 'hallmarks', set out in the Directive on Administrative Cooperation, as implemented in Greek Law. On 29 July 2020, Greece enacted the law on DAC 6. The publication of the Law in the Government Gazette is still pending (update on 31.07.2020) | Template form | Greek language. Basic information should also be reported in any official EU language | No | Non-disclosure: EUR 5,000 for each reporting arrangement (Single entry books), EUR 10,000 for each reporting arrangement (Double entry books). Inaccurate or incomplete information: EUR 2,500 for each reporting arrangement (Single entry books), EUR 5,000 for each reporting arrangement (Double entry books). For late submission: EUR 250 per month of delay and up to three months for each reporting arrangement (Single entry books), EUR 500 per month of delay and up to three months for each reporting arrangement (Double entry books). For the intermediary-lawyer that does proceed to a notification to the taxpayer: EUR 5,000 for each reporting arrangement (Single entry books), EUR 10,000 for each reporting arrangement (Double entry books). | Lawyers | sotiris.gioussios@gr.gt.com |
| Hungary | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | Electronic 'KONSTR' form | Official language (description sections can also be filled in English) | No | One-off fee of max. HUF 5,000,000 when the tax authority has already requested the submission of the form, otherwise, the general default penalty is 500 THUF | Law firms | timea.zednik@hu.gt.com |
| Ireland | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties, excise duties and compulsory social security contributions. | Electronic / XML file, web-based form | English | Yes | One-off EUR 4,000 plus EUR 100 for every day late for non-compliance once notified. Up to EUR 500 per day where arrangement not reported within 30 days. Up to EUR 5,000 for failure to include report reference number in annual tax return. | Law firms | peter.vale@ie.gt.com |
| Italy | No | 01-Jul-20 | TBC | - | Not yet defined | - | Official language | - | Not yet defined | No | alessandro.dragonetti@bgt.it.gt.com |
| Latvia | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | Electronic / XML file | Official language | No | One-off fee max EUR 3,200. A fine for a financial institution up to one percent of the financial institution's annual turnover (revenue) in the relevant reporting period, but not more than EUR 14 000. | No | martins.lubgans@lv.gt.com |
| Lithuania | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties, excise duties and compulsory social security contributions. | Electronic / XML file, web-based form | Official language or English | Yes | One-off fee of max. EUR 6,000 | No | vykintas.valiulis@lt.gt.com |
| Luxembourg | Yes | 01-Jul-20 | Yes | 6 months | Direct and certain indirect taxes. Taxes such as VAT, customs duties, excise duties, compulsory social security contributions, fees for certificates and other documents issued by public authorities and dues of contractual nature, such as consideration for public utilities, are excluded from the scope. | Electronic / XML file, web-based form | English | Yes | One-off fee of max EUR 250,000 | Law firms, auditors, accountants | jean-nicolas.bourtembourg@lu.gt.com |
| Malta | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | To be confirmed by the Commissioner for Revenue | Official language and English | No | One-off fee of max EUR 30,000 | Law firms, tax advisors, auditors, notaries | austin.demajo@mt.gt.com |
| Netherlands | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties, excise duties and compulsory social security contributions. | Electronic / XML file, web-based form | English | No | Fee of max. EUR 870,000 per arrangement | Law firms | jacob.mook@nl.gt.com |
| Poland | Yes | 01-Jan-20 | Yes | Dependent upon role of reporter | Cross-border arrangements within the meaning of DAC6 excluding VAT; additional hallmarks for cross-border arrangements for qualifying taxpayers; certain domestic arrangements for qualifying taxpayers; and other direct and indirect taxes. | Electronic / XML file, web-based form | Official language | Yes | Fee of PLN 10 million (EUR 2.3 million). Additional fee of max. PLN 20,160,000 (EUR 4.7 million) in specific cases for intermediaries and taxpayers. Potential fee of max. PLN 2 million (EUR 463k) for failure to introduce internal procedures by intermediaries or those employing intermediaries, whose revenues or costs exceeded in the year preceding the financial year the equivalent of PLN 8million. | Law firms, tax advisors, auditors | dariusz.bednarski@pl.gt.com |
| Portugal | No | 01-Jul-20 | TBC | - | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties. Domestic arrangements relating to VAT. | - | - | Yes | One-off fee of max Euro 160,000 | Any consultants with a legal obligation | joaquim.mendes@pt.gt.com |
| Romania | Yes | The reportable arramgements for which the first step was made between 25 June 2018 - 30 June 2020, must be reported by 28 Feb 2021; The reportable transactions for which the first stept was made between 1 July-31 Dec 2020 are reportale at 1 January 2021. | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | Template form | Official language | Yes | Fee of max. RON 100,000 per arrangement | Law firms, tax advisors | nadia.oanea@ro.gt.com |
| Slovakia | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | Electronic / XML file | Official language | No | One-off fee of max EUR 30,000 | Law firms, tax advisors, auditors | silvia.hallova@sk.gt.com |
| Slovenia | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | - | Official language | Yes | One-off fee of max EUR 150,000 | Law firms | vesna.ahcin@si.gt.com |
| Spain | No | 01-Jul-20 | No | - | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties, excise duties and compulsory social security contributions. | Web-based form | Official language | Yes | EUR 2,000 per data input, min. fee EUR 4,000. Max. fee; professional services fees paid for intermediary and tax value for taxpayer | Law firms, tax advisors, auditors | eduardo.cosmen@es.gt.com |
| Sweden | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | Electronic / XML file, web-based form | Official language or English | No | One-off fee of SEK 15,000 for first non-compliance event. SEK 150,000 for second non-compliance if entity has turnover > SEK 500m | Members of the Swedish bar association | pia.hedberg@se.gt.com |
| United Kingdom | Yes | 01-Jul-20 | Yes | 6 months | Cross-border tax arrangements that relate to taxes set out in the Directive on Administrative Cooperation, excluding VAT, customs duties or excise duties | Electronic / XML file | English | Yes | Fee of GBP 5,000 per arrangement plus GBP 600 for every day late. The first-tier tribunal may impose a penalty of up to GBP 1 million in cases it considers that the initial penalty is inappropriately low. | Law firms | karen.l.campbell-williams@uk.gt.com |
We can assist you in undertaking a risk assessment during the transitional period, designing and implementing procedures to identify transactions that contain one of the hallmarks, as well as meeting your future reporting obligations.
If you would like to discuss the disclosure requirements, please speak to your local member firm or the contacts listed in the table above.
