February 4, 2021
Cypriot Tax Department announces extension of deadlines for DAC6 submissions
On 3 February 2021, the Cypriot Tax Department (CTD) issued an announcement which provides for an extension of the deadlines for the submission of information on reportable cross-border tax arrangements under the European Union (EU) Directive on the mandatory disclosure and exchange of information (referred to as DAC6 or the Directive).
The Directive is yet to be transposed into the Cypriot Law on Administrative Cooperation in the field of Taxation. As a consequence of the delay in the transposition, certain deadlines under the Directive have already expired. Accordingly, the CTD has announced the extension of the deadlines for the submission of reports under DAC6 until 31 March 2021, for the following cases:
Practically, this means that for all reportable cross-border arrangements that will be made (i.e., that will be made available for implementation or will be ready for implementation or the first step in the implementation will be made or for which aid, assistance or advice will be provided by a secondary intermediary) as of 1 March 2021 onwards, information will need to be submitted to the CTD for DAC6 purposes within 30 days from the date of the specific triggering event that applies.
As per the same announcement, the CTD also clarified that the Directive is expected to be transposed into the national legislation in February 2021.
On 5 January 2021, the CTD issued two previous announcements on DAC6.
The first announcement referred to the opening of the registration process for intermediaries and relevant taxpayers to the "Ariadne" government portal for DAC6 purposes.
The second announcement referred to the definition of a reportable cross-border arrangement, the information that should be disclosed for DAC6 purposes, the reporting deadlines in Cyprus, as well as provided guidance on the submission of DAC6 XML reports through the "Ariadne" portal.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Cyprus Limited, Nicosia
PDF version of this Tax Alert