UPDATE | The Netherlands defers filing deadlines of mandatory disclosure regarding reportable cross-border arrangements (DAC6)

On 26 June 2020, the Dutch State Secretary of Finance announced that The Netherlands defers the start date of the reporting deadlines under the rules implementing the EU Directive regarding Mandatory Disclosure¹ (commonly known as the DAC6) by six months. The reason for the deferral is Covid-19 pandemic that is affecting businesses and EU Member States. 

Background – DAC6
DAC6 refers to an EU Directive adopted on 25 May 2018 regarding mandatory exchange of information for tax payers and intermediaries in the field of taxation in relation to reportable cross-border arrangements. For more information on the reporting obligations of DAC6 reference is made to our DAC6 information memorandum.

Reporting deadlines
Reporting obligations pursuant to the DAC6 apply retrospectively to transactions implemented as from 25 June 2018. Based on the announcement of the Dutch State Secretary of Finance, reportable arrangements which first implementation step is put in place during a transitional period starting on 25 June 2018 will be deferred from 1 July 2020 to 1 January 2021. The deferral originates from a proposal of the European Commission.

Reportable arrangements which first implementation step is put in place during the transitional period should therefore be reported no later than 28 February 2021. In this respect, reference is made to the below timeline:

Time line reporting obligations DAC6

Take away
Although the deferral may provide for additional time to comply with DAC6 reporting obligations, taxpayers and intermediaries should still act to meet the obligations. 

In order to mitigate the risk of fines derived from non-compliance with DAC6 reporting obligations, we recommend taking the following actions:    

1. Verifying whether any transaction which may qualify as a reportable cross-border transaction under DAC6 has been implemented as from 25 June 2018; 
2. Documenting the reasons for which transactions are considered to qualify (or not) as reportable transitions under DAC6;
3. Discussing the outcome with intermediaries involved in order to develop a common DAC6 approach.

We would be pleased to further assist you to comply with your DAC6 compliance.

¹: COUNCIL DIRECTIVE (EU) 2018/822 of 25 May 2018 amending Directive 2011/16/EU.