DAC6 – Directive of the Council of EU on mandatory disclosure and exchange of information on cross-border arrangements
Non imposition of penalties for submission of information up to 30th of June 2021
The Cyprus Tax Department announced the non-imposition of penalties for the overdue filing of information on reportable cross-border arrangements up to 30.06.2021 (current deadline on 31.03.2021) for the following cases:
- Reportable cross-border arrangements performed between 25 June 2018 and 30 June 2020 and had to be submitted by 28 February 2021.
- Reportable cross-border arrangements performed between 1 July 2020 and 31 December 2020 and had to be submitted by 31 January 2021.
- Reportable cross-border arrangements performed between 1 January 2021 and 30 May 2021, that had to be submitted within 30 days from the date they were made available for implementation or were ready for implementation or the first step in the implementation has been made, whichever occurred first.
- Reportable cross-border arrangements for which secondary intermediaries provided aid, assistance or advice, between 1 January 2021 and 30 May 2021 and had to submit information within 30 days beginning on the day after they provided aid, assistance or advice.
It is important to note that Cyprus has not as yet transposed the Directive into local law. Local legislation will broadly be aligned to the text and the minimum requirements of the Directive. We expect such transposition to take place by end of March. We also expect further guidance on the implementation of DAC6 and how filing will take place to be provided by the Cyprus Tax Department.
How Kinanis LLC can help
Our DAC 6 team is at your disposal to discuss in detail the DAC6 implementation in Cyprus and evaluate its implications on your business.
For a more detailed information on DAC6 in Cyprus you may visit the link here