Today the Council has formally adopted Directive amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements – also known as DAC6.
In brief, these rules require us to report to the (Belgian) tax authorities certain transactions, assistance or advice. The Directive includes a list of situations that are considered as indicators of tax avoidance and that require to be reported. The reported information will then be shared with tax authorities in EU through a centralized database as part of the broader tax transparency initiatives in Europe.
The Directive will enter into force 20 days after its publication in the Official Journal of the EU. After the Directive enters into force it will already have an impact, despite the obligation on the Member States to transpose the Directive into their national legislation only by 31 December 2019. Cross-border arrangements of which the first step was implemented between the date of entry into force (mid/late June 2018 depending on the date of publication) and the date of application of this Directive (1 July 2020) will be reportable by 31 August 2020.
For more insights and to understand the implications for your organisation, please contact Pieter Deré.
Please also see our previous post on this topic.