Cross-border arrangements – are you not subject to the new reporting obligation? (No. 946)

On 14 August 2020, a law was published in the Collection of Laws, transposing the Directive on Administrative Cooperation in the Field of Taxation (the so-called DAC 6 Directive) and amending the Act on International Cooperation in Tax Administration.

The amendment introduces an obligation to notify the tax administrator of specific cross-border arrangements. In particular, it will be essential to report those cross-border arrangements, whose main benefits lie in generation of tax allowances.

The cross-border arrangement should be reported primarily by the person who outlined it, e.g. an advisor. However, the law preserves the confidentiality towards the tax administrator, especially for tax advisors, lawyers and auditors. Therefore, they do not report the arrangement, and on that account, the user himself, i.e. the client, must report it.

In this information, we would like to draw attention especially to the fact that the cross-border arrangements, which qualify for reporting and on which the first steps HAVE BEEN STARTED ANYTIME AFTER 25 JUNE 2018, are subject to reporting obligation. The deadlines for reporting are:

• for cross-border arrangement processes that begun between 25 June 2018 and 30 June 2020 – 28 February 2021,
• for cross-border arrangement processes started between 1 July 2020 and 31 December 2020 – 30 January 2021.

The reporting form with all the relevancies will be published on the Tax Portal of the Tax Administration in the second half of October 2020.

publikováno 29.09.2020