DAC6: the Council of the European Union allows member states to extend the time limits for the filing and exchange of information
Spain Tax Alert
To address the impact of the health crisis, on June 24, 2020 the Council of the European Union approved Directive 2020/876/EU, amending the time limits for the filing and exchange of information set out in Council Directive 2011/16/EU (DAC6).
The new directive (published in the Official Journal of the EU on June 26, 2020) includes two new articles in DAC6, which, for the member states choosing to implement it, mean that:
a) The reporting date for cross-border arrangements which are reportable in the “transitional period” (i.e. where the first step in their implementation has been made between June 25, 2018 and June 30, 2020) is deferred until February 28, 2021.
b) The 30 day time limit for reporting cross-border arrangements featured in Annex IV of DAC6 will start on January 1, 2021 in the following cases:
Where the reportable cross-border arrangement is made available for implementation, is ready for implementation, or the first step in its implementation has been made, between July 1, 2020 and December 31 2020; or
Where involved “secondary intermediaries” provide (directly or by means of other persons) aid, assistance or advice between July 1, 2020 and December 31, 2020.
c) In the case of “marketable arrangements”, the first reporting period for intermediaries will take place on April 30, 2021.
d) The date of the first exchange of information by member states on cross-border arrangements featured in Annex IV to DAC6, is deferred until April 30, 2021.
The directive allows the Council, acting unanimously on a proposal from the Commission, to take a decision to extend the period of deferral by a further three months, depending on the future course of the pandemic.
Despite this (optional) deferral that has been granted, DAC 6 will still start to apply on July 1, 2020 and the cross-border arrangements carried out during the deferral period will also have to be reported when that deferral period ends.
For this deferral to take effect in Spain, the transposition legislation will have to elect the option to apply it in the terms described above.