DAC 6: New decision of the Council of the EU

Further to the proposal issued by the Commission a few weeks ago, and following the approval by the EU Parliament on 19 June, the Council of the EU has adopted on 24 June 2020 the revision of the directive 2018/822 MDR, referred to as DAC 6, which provides for reporting requirements in relation with potentially aggressive tax planning.

As a result, upon election Member States are allowed to postpone the DAC 6 reporting deadlines.

Should Member States decide to elect for such extension:

• The deadline to report arrangements for the period 25 June 2018 – 30 June 2020, originally set on 31 August 2020, could be postponed up to 28 February 2021;
   
•  The 30-day period to report arrangement for the period 1 July 2020 – December 31, 2020 would start on January 1, 2021 only.

Also, the Council may extend the above optional deferral period by an additional three-month period, depending on the evolution of the pandemic.

If certain Member States have already decided to postpone the deadlines (e.g., Belgium, Luxembourg, UK), others may not be willing to do so (e.g., Finland). 

The positions of the Member States will therefore have to be carefully monitored.

Please contact your usual CMS lawyer for more information

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