The Legal Notice (No. 315) that enacts the deferment by 6 months of the first reporting deadlines of cross-border arrangements under the Mandatory Disclosure Rules (DAC 6) has been published on 31 July 2020. The publication of the LN follows the announcement made by the Revenue on 2 July of the same deferral and transposes the extensions granted by Directive (EU) 2020/876 which has been adopted in June following the European Council’s agreement on the postponement of such deadlines. The extensions will provide taxpayers and intermediaries dealing with the impacts of the COVID-19 pandemic with additional time to ensure that they can comply with their obligations under the said Regulations. 

More technically, LN 315 amends the Cooperation with Other Jurisdiction on Tax Matters Regulations, SL 123.127 as follows:

• Amends Regulation 13(7)(m) – Intermediaries and relevant taxpayers shall file information on reportable cross-border arrangements the first step of which was implemented between 25 June 2018 and 30 June 2020 (so called ‘historical arrangements’) by 28 February 2021 (formerly 31 August 2021). 
• Introduces a new Regulation 13(12) providing for:
  • A 6-month extension for primary intermediaries. The start date for the 30 days reporting deadline for such reportable cross-border arrangements that are made available for implementation, or are ready for implementation, or where the first step in its implementation is made between 1 July 2020 and 31 December 2020, shall begin by 1 January 2021 (originally 1 July 2020).
  • A 6-month extension for secondary intermediaries. The start date for the 30 days reporting deadline for such reportable cross-border arrangements that are provided, directly or by means of other persons, between 1 July 2020 and 31 December 2020, shall begin by 1 January 2021 (originally 1 July 2020).
  • The first quarterly report on marketable arrangements to be due by 30 April 2021.

In light of the above, the first automatic exchange of information by the Maltese tax authorities to the competent authorities of all other EU Member States has been extended to 30 April 2021 (formerly 31 October 2020).

Earlier in June, the Commissioner for Revenue announced that it intends to publish guidance within the coming months to help businesses in their preparations to meet their Mandatory Disclosure reporting obligations. We will keep you updated with such developments.

Should you have any queries or wish to discuss further, please send an email to covid@kpmg.com.mt.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.