DAC 6: German Federal Minister of Finance Comments on Extension of Deadline – Luxembourg Submits Draft Law

DAC 6: German Federal Minister of Finance Comments on Extension of Deadline – Luxembourg Submits Draft Law

On 19 June 2020, we informed you about the decision of the European Council to allow EU Member States to extend the reporting period for cross-border tax arrangements as defined in the DAC 6 Directive by up to six months. The following extensions of the reporting deadline have been proposed:

 

  • If the first step of an arrangement was implemented between 25 June 2018 and 30 June 2020, reporting can be made by 28 February 2021.
  • If the first step of an arrangement is implemented between 1 July 2020 and 31 December 2020, the 30-day reporting period will start on 1 January 2021.
  • Information on marketable cross-border tax arrangements are to be submitted for the first time by 30 April 2021.

 

Section 97(33)(1) and (2) of the Introductory Act to the German Tax Code authorizes the German legislator to adopt amendments to the respective reporting deadlines at short notice.

 

At the Federal Press Conference on 6 July 2020, German Finance Minister Olaf Scholz made a surprise announcement that Germany would not make use of the possibility of extending the deadline. Thus, the deadlines set forth in Section 138f.(2) of the German Tax Code should continue to apply in Germany:

 

  • If the first step was implemented between 25 June 2018 and 30 June 2020, reporting must be made by 31 August 2020.
  • For arrangements from 1 July 2020 onwards, the 30-day period has already begun.

 

As previously described in our last update, the Luxembourg Ministry of Finance has already endorsed the proposal of the EU Commission on 4 June 2020. As a result of the draft law of 6 July 2020 (“Projet n° 7625 de loi du 6 juillet 2020”), the reporting deadlines should now be adjusted as follows:

 

  • If the first step of an arrangement was implemented between 25 June 2018 and 30 June 2020, reporting can be made by 28 February 2021.
  • If the first step of an arrangement is implemented between 1 July 2020 and 31 December 2020, the 30-day reporting period will start on 1 January 2021.
  • Information on marketable cross-border tax arrangements are to be submitted for the first time by 30 April 2021.

 

In the absence of a final statement by the German Federal Ministry of Finance regarding the deadline extension, the stricter reporting obligations will apply to intermediaries resident in Germany. In Luxembourg, we are now awaiting the adoption by the Parliament of the law extending the reporting requirements.