Germany announces no DAC 6 deferral of deadline for reporting cross-border tax arrangements

On July 6th 2020, the German Ministry of Finance announced at a Press Conference that the country will not exercise the option given in the recent EU Directive (EU 2020/876 of 24 June 2020), which came into force on June 27th, to extend the reporting deadlines for DAC 6.

The Directive had the aim to address the pressing need to defer time limits for the filing and exchange of information in the field of taxation due to the COVID 19 pandemic, allowing Member States to defer by 6 months the deadlines of reportable arrangements.

So far, 21 member states have decided to opt for the deferral agreed at EU level, so it came as a surprise the decision of the German government to not exercise such option.

The deadlines remain therefore unchanged for Germany (and for Austria and Finland, which also decided to exclude the deferral option) and from July 1, 2020, arrangements will need to be reported within the 30-day reporting period.

SOURCE: STEP News