What is DAC 6?

DAC 6 is a European Directive regarding the mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements. It was transposed in Maltese legislation by virtue of Legal Notice 342 of 2019.

Who is obliged to report?

DAC 6 requires intermediaries and, in certain circumstances, relevant taxpayers to provide information on reportable cross-border arrangements to EU Member States’ tax authorities.

What are the upcoming deadlines to report?

• Cross-border arrangements that fall within DAC 6 scope, provided between 01.07.2020 and 31.12.2020 must be reported by 31.01.2021.

• Cross-border arrangements that fall within DAC 6 scope, the first step of which was implemented between 25th June 2018 and 30th June 2020 must be reported by 28.02.2021.

What are the consequences for failing to report?

Failure to comply with one’s obligations under DAC 6 will incur hefty penalties.

Are DAC 6 obligations ongoing?

DAC 6 is here to stay. Going forward, reportable arrangements must be filed within 30 days from, depending on which occurs first:

(i) the day after the reportable cross-border arrangement is made available for implementation; or

(ii) on the day after the reportable cross-border arrangement is ready for implementation; or

(iii) when the first step in the implementation of the reportable cross border arrangement has been made.

----

The information above does not, and is not intended to, constitute legal advice and should not be relied on as such. For any specific matters kindly seek legal assistance.