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.
In light of the Brexit Fair Trade Agreement that passed through parliament on 30 December 2020, Gibraltar has followed the UK and amended their reporting requirements by aligning them closer to the OECD’s Mandatory Disclosure Rules (MDR).
Gibraltar’s commitments under the ongoing UK/Spain Agreement regarding Gibraltar mean that the reporting standards in respect of Spain may be realigned with the EU Directive standards in the future.
In light of the COVID-19 pandemic, Italy is set to decide how they will be deferring DAC6
We are publishing a series of guides on how each EU member state has implemented DAC6. The guide provides a preview to our full up-to-date country-by-country guide to DAC6.
Our next guide focusses on the Italy’s implementation of DAC6.
This blog was originally published in July 2020 and was updated in January 2021.
Has Italy implemented DAC6?
Legislation Details
Italy’s tax authority, Ministero dell’Economia e delle finanze (Ministry of Economy and Finance), published DAC6 draft legislation, called Legislative Decree no. 100 / 30 July 2020.
Taxes covered
Italy’s legislation covers cross-border arrangements. The legislation is in line with the EU Directive and does not include domestic arrangements or any additional hallmarks.
Legal Professional Privilege
LPP applies in Italy in the following cases, to lawyers and legal service providers:
in case of an examination and assessment of the legal position of the client, including advice on the possibility to bring or avoid legal proceedings
activities of defence and assistance in legal proceedings, including information received or obtained before, during and after the conclusion of the proceedings
In cases where LPP and self-incrimination exemptions apply, the reporting obligation shifts to other intermediaries or the relevant tax payer.
Reporting
Reporting will be made via an EXML schema. The information should be submitted in Italian, and an English translation must be provided for some items.
Penalties
Penalties for non-compliance with the MDR regulation range between EUR 2,000 and EUR 21,000.
In light of the COVID-19 pandemic, Luxembourg has taken the decision to defer DAC6 reporting by six months
We are publishing a series of guides on how each EU member state is implementing DAC6. The guide provides a preview to our full up-to-date country-by-country guide to DAC6.
Our next guide focusses on the Luxembourg’s implementation of DAC6.
VinciWorks is publishing a series of guides on how each EU member state has implemented DAC6.This blog was originally published in July 2020 and was updated in January 2021.
Has Luxembourg implemented DAC6?
Legislation Details
Luxembourg’s tax authority, Ministere des Finances (Ministry of Finance), published DAC6 legislation, called Loi du 25 mars 2020 relative aux dispositifs transfrontières devant faire l’objet d’une déclaration (Law of 25 March 2020 on cross-border arrangements to be reported), on 25 March 2020.
Taxes covered
Luxembourg’s legislation covers cross-border arrangements. The legislation is in line with the EU Directive and does not include domestic arrangements or any additional hallmarks.
Legal Professional Privilege
Luxembourg exempts from reporting those intermediaries who are protected by legal professional privilege. This includes lawyers and law firms, certified accountants, and independent auditors. When an intermediary is bound by LPP, they must notify any other intermdiary involved, or if there are none, the relevant taxpayer, within ten days.
Reporting
The two options for reporting in Luxembourg are a filing procedure which should be available from 1 July 2020 via My Guichet (available in English, French, and German) or a “drag and drop” facility for a specific XML file, which should be available under the section “Dispositions pratiques, documents à consulter et autres liens utiles” of the DAC6 dedicated platform. Additional information regarding the reporting format will be published by the Luxembourg Tax Authorities on a web page dedicated to this topic.
Forms are available in French, German and English, though some information must be submitted in English regardless of the language used for reporting.
Penalties
According to the law, the penalties for non-compliance with the DAC6 obligations amount to a maximum of EUR 250,000 (which is in line with the penalty applicable in the context of exchange of information).
In light of the COVID-19 pandemic, Sweden has chosen to delay DAC6 reporting by six months
We are publishing a series of guides on how each EU member state has implemented DAC6. The guide provides a preview to our full up-to-date country-by-country guide to DAC6.
Our next guide focusses on Sweden’s implementation of DAC6.
This blog was originally published in July 2020 and was updated in January 2021.
Has Sweden implemented DAC6?
Legislation Details
Sweden’s tax authority, the Swedish Tax Agency (Skatteverket), published the second DAC6 draft bill on 4 February 2020. The legislation is called Lag (2020:434) om rapporteringspliktiga arrangemang – Act (2020:434) on reporting arrangements.
Taxes covered
The legislation is in line with the EU Directive and does not include domestic arrangements or any additional hallmarks.
Legal Professional Privilege
The Swedish DAC6 legislation partly exempts affiliated members of the Swedish Bar Association from the reporting obligation due to legal professional privilege. Therefore, affiliated members of the Swedish Bar Association do not need to report information that conflict with Swedish LPP rules. Swedish non-bar member lawyers, legal advisers, tax advisors, auditors and accountants are liable to report.
Reporting
Reports will be made online via the data portal of the tax authorities. The Swedish Tax Agency will offer two possible methods to submit the DAC6 reports: a web-based form and an XML upload. The language of reporting is English.
Penalties
Penalties may be imposed if there is a failure to report, or if the report is incomplete or incorrect. However, a failure to report will not be regarded as a criminal offense.
As the initial reporting deadline for DAC6 approaches, VinciWorks’ DAC6 reporting tool is prepared for reporting across EU member states and the UK.
One of the complexities of DAC6 is in fact that each jurisdiction has implemented DAC6 differently with different reporting requirements and different XML schemas for automated reporting.
VinciWorks’ Omnitrack software adapts itself to the reporting requirements of each jurisdiction, collects all of the necessary information and can generate a valid XML file.
The Irish Revenue has released new DAC6 guidance including the option to file a partial report when legal professional privilege applies. The Revenue has clarified that when only part of the specified information is privileged, an exemption from reporting will only apply in respect of that information.
In arrangements where legal professional privilege applies, the DAC6 report should be filed in the ROS portal using the MyEnquiries section, setting out the identity of the relevant taxpayer and other intermediaries involved in the reportable cross-border arrangement.
A copy of the format of the partial report can be found here.
The Belgian Ministry of Finance has announced that due to communication difficulties between intermediaries and taxpayers (in light of the COVID-19 pandemic), the Belgian Tax Administration will be postponing its reporting deadline. The penalties for late submission will not be applied during the leniency period.
This means that the reporting deadline for historical arrangements from 25 June 2018 to 31 December 2020 must now be reported by 28 February 2021. Arrangements that meet a reporting trigger in January 2021 will also only need to be reported by 28 February 2021.
There is no indication that this deadline will be extended further, especially since reporting via the MyMinfin DAC6 portal of the FPS Finance has been available since 4 January 2021.
VinciWorks is publishing a series of guides on how each EU member state has implemented DAC6.This blog was originally published in July 2020 and was updated in January 2021.
DAC6 Reporting in the Netherlands
Note: Add a new suggested subheading and write here in general about the DAC6 reporting in the Netherlands.
DAC6 reporting rules in the Netherlands impose obligations on both intermediaries and taxpayers. Intermediaries are required to report cross-border arrangements that meet the predefined hallmarks to the Dutch tax authorities within a specified timeframe. By promoting early identification of potentially aggressive tax planning, it supports the efforts of tax authorities in safeguarding the integrity of the tax system and ensuring a level playing field for businesses and individuals.
How has the Netherlands implemented DAC6?
Legislation Details
The Belastingdienst (Tax and Customs Administration) published the Netherlands’ DAC6 legislation on 27 December 2019. The legislation is called Law of 18 December 2019 amending the Law on International Assistance in Taxation and the General Law on State Taxes in connection with the implementation of Council Directive (EU) 2018/822 of 25 May 2018 amending Directive 2011/16/EU with regard to mandatory automatic exchange of information in the field of taxation with regard to reporting cross-border arrangements (PbEU 2018, L 139) (Implementation of the EU Directive on reporting cross-border arrangements) – Wet van 18 december 2019 tot wijziging van de Wet op de internationale bijstandsverlening bij de heffing van belastingen en de Algemene wet inzake rijksbelastingen in verband met de implementatie van Richtlijn (EU) 2018/822 van de Raad van 25 mei 2018 tot wijziging van Richtlijn 2011/16/EU wat betreft verplichte automatische uitwisseling van inlichtingen op belastinggebied met betrekking tot meldingsplichtige grensoverschrijdende constructies (PbEU 2018, L 139) (Wet implementatie EU-richtlijn meldingsplichtige grensoverschrijdende constructies). There is an additional legislation called Guidelines published in the Official Gazette no. 34991/2020 – Decree no. 2020 – 11382, Guidance Notifying Cross-Border Constructions, 30.06.2020.
Taxes covered
Legislation in the Netherlands covers cross-border arrangements. The legislation is in line with the EU Directive and does not include domestic arrangements or any additional hallmarks.
Legal Professional Privilege
The Netherlands exempts from reporting the intermediaries who are protected by legal professional privilege. In these cases the reporting obligation will shift to other intermediaries or if there are none, the relevant taxpayers. The intermediaries included in the exemption are mainly attorneys-at-law and civil-law notaries. The exemption generally does not cover tax advisors and accountants.
Reporting
Reporting should be done using an XML schema. It will also be possible to fill out a web-based form. The preferred language for reporting is English. If reporting is done in Dutch, it must be completed in English as well.
Penalties
The Netherlands implemented significant fines and penalties for not reporting an arrangement in a timely fashion or for incomplete or incorrect reporting. The maximum penalty is EUR 870,000 (as of 01/01/2020).
