Gibraltar: Update on application of EU mandatory disclosure rules (DAC 6)

Gibraltar: Mandatory disclosure rules

Gibraltar’s Competent Authority announced that Gibraltar will be aligning its reporting requirements under the retained provisions of the EU Directive on Administrative Cooperation (DAC 6) regarding the standard required by the Organisation for Economic Cooperation and Development (OECD).


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With the end of the Brexit transition period, beginning 1 January 2021, the UK (including Gibraltar) is formally a third-party country from an EU perspective.

It had been expected that the mandatory disclosure rules for intermediaries and relevant taxpayers would continue to apply in line with DAC 6. Under DAC 6, intermediaries and, in certain cases, relevant taxpayers are required to report information regarding cross-border arrangements that meet one or more specific characteristics or features (hallmarks).

However, under the UK-EU Free Trade Agreement (December 2020), the UK chose to follow the OECD’s mandatory disclosure rules [PDF 1.2 MB]—rather than those in the EU directive. 

Gibraltar reporting requirements

The announcement from the Competent Authority of Gibraltar with regard to mandatory disclosure will result in an exchange of information on potential cross-border tax planning arrangements at a level that complies with the OECD mandatory disclosure standard. Legislation has been published in Gibraltar’s official gazette to provide that effective from 1 January 2021, reporting is required in relation to “Category D” hallmarks only, while also extending the territorial application to include reportable arrangements involving both the UK and EU Member States.

Category D hallmarks comprise common reporting standard (CRS) avoidance arrangements and opaque offshore structures (i.e., obscuring the ultimate beneficial ownership)—the two categories within the scope of the OECD’s rules.  Category D hallmarks refer to:

  • Arrangements that may have the effect of undermining the reporting obligation under agreements on the automatic exchange of information or that take advantage of the absence of such legislation or agreements (hallmark D.1.)
  • Arrangement involving a non-transparent legal or beneficial ownership chain with the use of persons, legal arrangements or structures (hallmark D.2.)

No disclosures will be required with respect to arrangements that fall into one of the other hallmarks (hallmarks A, B, C and E of DAC 6). The Gibraltar Competent Authority will provide updates in relation to all further developments.

For more information, contact a KPMG tax professional in Gibraltar:

Darren Anton | +44 207 694 8556 |

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