On 11 August 2020, legislative decree no. 100 of 30 July 2020 (hereinafter the “Decree”) has been published in the Official Gazette. The Decree implements Directive (EU) 2018/822 of 25 May 2018 regarding mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements (“DAC 6” Directive).
Basic contents (e.g., hallmarks) and definitions provided by the Decree are substantially aligned with those of the Directive. Applicable penalties are not particularly harsh: in case of failure to report a cross-border arrangement, an administrative penalty ranging between Euro 3,000 and Euro 31,500 can be applied, while in case of incomplete reporting the range is between Euro 1,000 and Euro 10,500.
The Decree also provides for the six-month deferral due to the COVID-19 pandemic that applies to the time limits for filing and exchanging information on reportable cross-border arrangements in accordance with Directive (EU) 2020/874 of 24 June 2020, namely:
- cross-border arrangements the first step of which was implemented from 25 June 2018 to 30 June 2020 will be reported by 28 February 2021 (instead of 31 August 2020);
- the 30-day period for reporting cross-border arrangements the first step of which was or will be implemented between 30 June and 31 December 2020, will start on 1 January 2021 (instead of 1 July 2020);
- the first exchange of information on reportable cross-border arrangements will be extended to 30 April 2021 (instead of 31 October 2020); and
- in the case of marketable arrangements (i.e., not customized cross-border arrangements), the first periodic reporting will be submitted by 30 April 2021.
Further technical details will be provided by:
- a ministerial decree concerning the application of the Decree (Art. 5(2) of the Decree); and
- an act of the Director of the Revenue Agency clarifying the procedure for filing and exchanging information on reportable cross-border arrangements (Art. 7(5), 8(2) and 9(1) of the Decree).
