DAC6: deferral of reporting time limits
On 27 July 2020, Cyprus adopted a six-month deferral related to the European Union (EU) Directive on mandatory disclosure and exchange of cross-border tax arrangements (DAC6). The decision was dictated by the COVID-19 pandemic and the changes in the deadlines which the EU Council implemented to the directive for all EU countries.
The new reporting deadlines
- Cross-border arrangements of which the first step of implementation took place between 25 June 2018 and 30 June 2020 must be reported by 28 February 2021.
- Cross-border arrangements implemented between 1 July 2020 and 31 December 2020 must be submitted within 30 days after 1 January 2021.
- Cross-border arrangements made after 1 January 2021 have to be reported during the period of 30 days starting from the day after the arrangements are made available for implementation or are ready for implementation, or when the first step in their implementation has been made, whichever occurs first.
- In the case of marketable* arrangements, the report must be made by the intermediary by 30 April 2021 at the latest.
The Main Partner Trust experts draw your attention to the fact that despite the change in the reporting deadlines for cross-border agreements, the reporting requirements in accordance with DAC6 remain unchanged.