Council of the EU adopts amendment to postpone DAC6 reporting deadlines

On 24 June 2020, the Council of the EU adopted an amendment to Council Directive (EU) 2018/822 of 25 May 2018 amending Directive 2011/16/EU with respect to the mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements (‘DAC6’) with a view to defer certain time limits for the filing and exchange of information in the field of taxation due to the COVID-19 pandemic (the ‘Amendment’).

The Amendment grants Member States the option to defer the deadlines for the filing and exchange of information stipulated in DAC6 by a period of up to six months.

The Amendment provides that, where a Member State decides to take the option to defer the applicable time limits the following shall be applicable:

• Information on reportable cross-border arrangements the first step of which was implemented between 25 June 2018 and 30 June 2020 shall be filed by intermediaries and relevant taxpayers by 28 February 2021 (instead of 31 August 2020);
• The first information shall then be communicated by the competent authorities by 30 April 2021 (instead of 31 October 2020); and
• The period of 30 days for filing information shall begin by 1 January 2021 where:
  a) A reportable cross-border arrangement is made available for implementation, or is ready for implementation, or where the first step in its implementation has been made between 1 July 2020 and 31 December 2020; or
  b) Intermediaries provide, directly or by means of other persons, aid, assistance or advice between 1 July 2020 and 31 December 2020.
• In the case of marketable arrangements, the first periodic report shall be made by the intermediary by 30 April 2021.

The Council of the EU may, under strict conditions and depending on the way in which the COVID-19 pandemic continues to develop, decide to further extend the period of deferral of the time limits by three months.

DAC6 was implemented in Malta through Legal Notice 342 of 2019. Malta is yet to adopt a formal position as to whether it will be availing itself of the option to defer the applicable time limits for the reporting and exchange of information as highlighted above.

The full text of the Amendment can be found here.