EU MDR deferral proposed EU MDR deferral proposed EU MDR deferral proposed

The European Commission (EC) issued a press release announcing proposals to postpone the entry into force of EU MDR in response to the difficulties that businesses and EU Member States are facing due to the coronavirus (COVID-19) pandemic.

As noted in their press release of 8 May 2020, the EC is proposing to defer by three months certain deadlines for filing and exchanging information under the Directive on Administrative Cooperation (Council Directive 2011/16/EU, also known as “DAC”). The initiative comes in the form of a Directive amending the DAC and proposes the following:

As regards the EU mandatory disclosure rules (MDRs) introduced by Council Directive 2018/822/EU (DAC6):

• Change the date for the beginning of the 30-day period for reporting cross-border arrangements from 1 July 2020 to 1 October 2020
• Change the date for the reporting of cross-border arrangements that became reportable from 25 June 2018 to 30 June 2020 (the so-called “historical” arrangements) from 31 August 2020 to 30 November 2020
• Change the date for the first exchange of information on reportable cross-border arrangements, that is from 31 October 2020 to 31 January 2021

The EC also proposes a possibility to further extend the deferral period once, for a maximum of three additional months. It is proposed that this option would only be invoked if during the initial period of deferral, the exceptional circumstances of severe risks for public health caused by the COVID-19 pandemic persist and the EU Member States are forced to implement lockdown measures.

Unanimous agreement among EU Member States is required in order for the EC’s proposal to be adopted and enter into force. It is understood that there is some disagreement among Member States over how long the deferral should be, with some members looking for a longer period.  It is hoped that formal agreement will be reached in the near future on the exact length and terms of any deferral.

It is hoped that the Irish Revenue will apply any deferral that is agreed at EU level.  

• Webcast 13 May 2020:
  Are you ready for European Mandatory Disclosure? Where we are and how to deal with uncertainty
• Webinar 28 April 2020:
  EU Mandatory Disclosure – Impact for Multinationals and Irish Headquartered Groups
• Webcast 23 March 2020:
  EU Mandatory Disclosure Regime - Impact for Financial Services