DAC6: Final Cypriot legislation expected in February 2021

Cypriot DAC6 Legislation

Amendments to the existing Cypriot Law on Administrative Cooperation in the field of Taxation (Law 205(I)/2012) are expected to be finalised in February 2021. Following some final changes, it will be voted at the next plenary session of the Cypriot Parliament. Guidance is expected to follow shortly after the enactment.

Reporting Status

The DAC6 reporting portal – “Ariadne” DAC6 reporting portal is open. However, since the DAC6 Directive has not been transposed into Cypriot Law, filing reports is on a voluntary basis until legislation is enacted. The reporting mechanism is via XML and the Cyprus Tax Department has created a dedicated guidance page containing the XML schema and a User Guide.

Registration

While many Cypriot taxpayers and intermediaries may choose to wait until reporting is mandatory in Cyprus, it is recommended that all Cyprus-based intermediaries and taxpayers already register with the “Ariadne” DAC6 reporting portal. The DAC6 process is different from the CRS/FATCA (DAC2) and Country by Country Reporting (DAC4) process.

Penalties

It is expected that the Cypriot Tax Department will make further announcements regarding penalties and a potential “grace period” given that the final law and guidance is not yet ready.

DAC6 reporting solution

VinciWorks’ DAC6 Solution offers reporting solutions for international firms for MDR regulations in many jurisdictions including Cyprus.

Get in touch with us to see how Omnitrack can help ensure you are completing your reporting requirements.

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