To increase fiscal transparency across the EU, the Mandatory Disclosure Directive entered into force on 25 June 2018.

The Directive (also known as DAC 6) requires intermediaries — such as EU-based tax consultants, banks and lawyers — to report cross-border transactions and tax arrangements that the EU considers potentially aggressive. In principle the reporting starts as per July 1, 2020, after which intermediaries should report within 30 days after a reportable cross-border transaction (with an extension for cross-border arrangements between June 25 2018 and July 1 2020). Albeit this reporting period might be extended due to Corona it is very important to prepare your company for this new reporting requirement, as non-compliance with these new reporting requirements could lead to significant fines.

Related articles