What is DAC6?
The Council of the European Union (EU) has adopted Directive 2018/822 (DAC6 or
the Directive) on the mandatory disclosure and exchange of cross-border tax
arrangements. It sets out to strengthen transparency in the tax ecosystem. DAC6
compliance is a continuous marathon for taxpayers and it’s part of the “new normal”
of the tax ecosystem.
The information about the cross border reportable arrangements will be automatically
exchanged between the EU Member States. DAC6 has broadened the reporting
requirement by imposing reporting obligations on the intermediaries who are involved
in certain reportable cross-border arrangements (RCBA) and requires reporting
detailed information on a broad range of cross-border tax arrangements.
The Republic of Cyprus has published draft legislation to transpose Directive