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EU: Deferral of tax reporting deadlines, DAC amendment enters into force

EU: Deferral of tax reporting deadlines, DAC amendment

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.

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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:

  • By 28 February 2021 (previously 31 August 2020) for arrangements where the first step was implemented between 25 June 2018 and 30 June 2020 (so-called “historical arrangements”).
  • The start date for the 30 days reporting deadline to begin by 1 January 2021 (originally 1 July 2020). This will also apply with respect to cross-border arrangements for which the reporting trigger occurs between 1 July 2020 and 31 December 2020. The deadline for a reportable cross-border arrangement that is made available for implementation or is ready for implementation, or where the first step in its implementation has been made during the deferral period will therefore be 30 January 2021
  • The new deadline for the first periodic report on marketable arrangements would be 30 April 2021.


KPMG observation

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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