The Cyprus Tax Authorities published on 22/05/2020, the proposal of the EU regarding the grant of extension on deadlines for reporting under the Directive 2011/16/EU Directive on Administrative Cooperation (DAC), in view of the Covid-19 outbreak and the disruption caused in the business sector at global level.
In particular, the proposal refers to deferral of deadlines for reporting under the Directive (EU) 2018/822 (also known as DAC6, referring to automatic exchange of information in relation to reportable cross-border arrangements) and Directive 2014/107/EU (also known as DAC2, referring to automatic exchange of information in relation to information on financial accounts).
The EU proposal was published on 08/05/2020 and contains the following responses:
Further there is a possibility of extending the above-mentioned deferral period, depending on the evolution of the Covid-19 pandemic.
Even though the proposal states that the Member States shall adopt and publish by 31/05/2020 the laws and regulations to comply with this initiative, whose provisions shall apply from 01/06/2020, it is of doubt whether the subject deadlines shall be met. Nevertheless, it is expected that the outcome of the initiative shall be derived within the following months.
Partner – Tax Department
Associate – Tax Department