Managing cross-border tax arrangements in a DAC6-compliant manner
The DAC6 Directive (EU) obliges the member states of the EU to regulate the notification obligation for intermediaries and taxpayers in the case of certain cross-border tax arrangements. In Germany, the Directive was implemented with the introduction of paragraphs 138d-138k of the German Tax Code on January 1, 2020. A reporting obligation exists since July 2020. Here you can find all information as well as our services around DAC6.
The background to these regulations is to inform the tax authorities at an early stage about the implementation of tax arrangements that may be abusive.
When is tax structuring reportable?
The notification obligation applies to arrangements that affect a type of tax from the EU Administrative Assistance Act. These are in particular income tax, corporate income tax, trade tax, inheritance tax and gift tax. The content and scope of the data to be transmitted, as well as sanctions in the event of non-reporting or incorrect reporting, vary from EU country to country as a result of national legislation.
Who is obliged to notify?
The notification obligation primarily concerns so-called intermediaries. This means that any person who:
participates in an advisory capacity in the conception and/or implementation of cross-border tax structuring
the design marketed
conceives or organizes the design for third parties
provides the design for use or manages its implementation by third parties
The term "intermediary" is not limited to a specific professional group, but in Germany includes:
Representatives of the finance and insurance industry
When must the notification be made?
The notification must be made within 30 days after one of the events referred to in section 138f(2) of the Tax Code has occurred.
All services related to DAC6 consulting and the introduction of DAC6 compliance management at clients are allocated under DAC6 Consulting.