The amendment allowing EU Member States the option of more time to comply with certain rules on cross-border information reporting (MDR and CRS) has been published in the EU Official Journal and will enter into force on 27 June 2020—and prompting more EU Member States to announce their decision.
As previously reported (read TaxNewsFlash), on 24 June 2020, the Council of the European Union announced that it had adopted an amendment to the Directive on Administrative Cooperation (DAC) allowing EU Member States an option to defer the time limits for automatic exchanges of information under the EU common reporting standard (CRS) for reporting financial institutions (DAC2) and filing and exchange of information with respect to mandatory disclosure requirements (MDRs, DAC6).
The amendment (Council Directive (EU) 2020/876 of 24 June 2020) was published in the Official Journal of the EU on 26 June 2020 and enters into force the following day (i.e., 27 June 2020).
With respect to DAC6 (MDR), the amendments as adopted give EU Member States the option to delay the deadlines for filing information on reportable cross-border arrangements by up to six months, as follows:
Some EU Member States have already made announcements or have published draft laws expressing their choice to opt for a six-month deferral (for example, Belgium, France, Ireland, Luxembourg, the Netherlands, and the UK), while other countries have only informally confirmed the same intention (for example, Germany, Latvia, Romania).
Countries that have not yet completed DAC6 transposition into domestic law (such as Cyprus, Italy, Portugal, and Spain) are also expected to opt for the six-month deferral. To date, Finland is the only EU Member State that announced that it will go ahead according to the initial timeline. Read Euro Tax Flash for more information on reactions from EU Member States.
For more information, contact a tax professional with KPMG’s EU Tax Centre
Robert van der Jagt | +31 889 0 91 356 | VanderJagt.Robert@kpmg.com
Raluca Enache | +31 889 0 91 465 | Enache.Raluca@kpmg.com
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