On July 26, 2019, the Luxembourg government approved the transposition bill for the amended EU Directive on administrative cooperation in the field of taxation (DAC 6) – also known as the EU Directive implementing mandatory disclosure rules for intermediaries (MDR).
On June 5, 2018, DAC 6 was published in the Official Journal of the European Union and entered into force on June 25, 2018. For more information about DAC 6, check out our tax alert.
The bill introduces a new obligation for EU intermediaries (and for taxpayers in some cases) to disclose certain reportable cross-border arrangements to the Luxembourg tax authorities, which will then be shared with other EU tax authorities.
As of July 1, 2020, DAC 6 requires information on cross-border arrangements to be reported within 30 days. The countdown begins from whichever occurs first: either the day after the reportable cross-border arrangement is made available/ready for implementation, or when the first implementation step is made.
However, a retroactive application is foreseen regarding cross-border arrangements where the first step was implemented between DAC 6’s date of entry into force (June 25, 2018) and DAC 6’s application date (July 1, 2020). In this case, the related information must be reported by August 31, 2020.
The bill must now be submitted to parliament and follow the legislative process.
We will share more details on the bill’s provisions as soon as the text is available – so stay tuned!