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What is DAC6?

The new EU directive on Mandatory Disclosure Rules (MDR) for intermediaries (DAC6) goes one step further in the fight against aggressive tax arrangements and opaque structures. The new directive requires mandatory reporting of cross-border arrangements and considerably impacts intermediaries, such as, banks, asset managers, financial and tax advisors, tax specialists and wealth managers. Intermediaries will have to disclose information on cross-border arrangements, including the date of the arrangement and its value. 

Due to the Corona pandemic, the European Commission has made the decision to postpone the deadline for the reporting of certain cross-border arrangements. The deadlines have been postponed by three months with the possibility of an additional deferral by three months. Certain cross-border arrangements from July 1, 2020, now have to reported by October 1, 2020, latest. The reporting deadline for those cross-border arragements that took place from June 25, 2018, to July 1, 2020, have to reported by November 30, 2020.

Who is affected by DAC6?

Affected are intermediaries, namely any professional that provides tax advisory services, from large financial institutions to small intermediaries, e.g., asset managers, lawyers or real estate agents. The reporting obligations must be met by intermediaries that are linked to the EU, for example, based on their tax residency or their incorporation. Timing is critical: Intermediaries will have to report within 30 days after the scheme is "made available" for implementation, is "ready" for implementation, or when "first step" in the implementation has been made - whichever occurs first.

How can we support you in meeting the DAC6 requirements?

With our FiTAX DAC6/MDR solution, we help intermediaries to comply with DAC6/MDR reporting obligations. Our standardized solution is ready to use, easy to deploy and can be customized according to your specific requirements. We would be happy to give you an online demo of the solution. Please use our form to contact us.

The solution provides the following functionalities:

• Identification of the reportable arrangements (manually or automatically)
• Capturing of the data of the reportable cross-border arrangements
• Evaluation, assessment and definition of the reportable arrangements and documentation of the decisions
• Reporting of the collected data and creation of the delivery files
• Packaging, encryption and submission of the reportable data to the tax authorities
• Post-reporting corrections, iterative reporting and storage of the originally submitted data for audit purposes