The Commission clarified that the beginning of application of DAC6 will remain July 1, 2020, and the reportable arrangements made during the postponement period will have to be reported once the deferral has terminated.
On May 8, 2020, the European Commission decided to defer certain deadlines for filing and exchanging information under EU Directive 2018/822 of 25 May 2018 (commonly known as DAC6).
The decision was taken in view of the difficulties that businesses and member states are facing with the Coronavirus crisis.
Under the deferral, member states will have three additional months to exchange information on certain cross-border tax planning arrangements.
The Commission clarified that the beginning of application of DAC 6 will remain July 1, 2020, and the reportable arrangements made during the postponement period will have to be reported once the deferral has terminated.
Depending on the evolution of the Coronavirus pandemic, the Commission proposes the possibility to extend the deferral period once, for a maximum of three further months.
Last month, a group of financial associations had requested the EU Commission to defer the DAC 6 reporting obligation until 2021.
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable at editor@transferpricingnews.com