05/06/20

INTERNATIONAL TAX: EU Agrees to Optional Six-Month Delay for Tax Reporting Deadline.

As published on news.bloombergtax.com/daily-tax-report, Thursday 4 June, 2020.

EU members have agreed to let any state postpone for six months the deadlines for the tax reporting mandate known as DAC 6, an EU official confirmed Thursday.

The bloc’s 27 member states can choose to apply the deadline extension or stick to the original deadlines, the EU official told Bloomberg Tax.

The amending directive will be officially published in the coming weeks, after the proposal has been formally endorsed by European leaders, the Luxembourg Finance Ministry said in a statement. Adoption is expected by the end of June, the EU official said.

European Union member states reached a political agreement to allow the postponement via “administrative tolerance” due to the coronavirus, the Belgian Finance Ministry said in a statement.

The delay means that, for example, reports on a company’s tax arrangements between June 2018 and June 2020 would be due to the Belgian competent authority by Feb. 28, 2021, the Belgian statement said.

The directive is part of a broader EU effort to crack down on aggressive tax planning. It requires companies and intermediaries like tax advisers to report information on certain kinds of cross-border tax arrangements. Member states will then exchange information to spot problematic tax arrangements quickly.

Member states also agreed to an optional three-month delay on the deadline for another directive, known as DAC 2, the Luxembourg Finance Ministry said.