DAC time-limits deferred

Further to the Commission proposal last month (See MIT News 10 May 2020) the European Council has approved an amendment to the Directive on Administrative Cooperation (DAC) allowing member states an option to defer the time limits for the filing and exchange of certain information by up to 6 months.

The option applies to:

  • automatic exchanges of information on financial accounts of which the beneficiaries are tax residents in another member state;
  • reportable cross-border tax planning arrangements.

Download the text to the amendment to the Directive here.

In summary, Directive 2020/876 gives Member States the option to allow intermediaries and relevant taxpayers to file information on reportable cross-border arrangements the first step of which was implemented between 25 June 2018 and 30 June 2020 by 28 February 2021 (instead of 31 August 2020).

Where such option is exercised, Member State must take measures to allow for:

  • the information to be communicated by 30 April 2021 (instead of 31 October 2020) and
  • for the 30-day period in the case of reportable cross-border arrangements made ready for implementation between 1 July 2020 and 31 December 2020 to commence on 1 January 2021.
First published on 25 June 2020. Updated on 29 June 2020