DAC6

What is DAC6 reporting?

DAC6 reporting is a significant requirement for transparency in cross-border tax arrangements within the European Union (EU).  DAC6, formally known as Directive 2018/822, is an EU directive that mandates the reporting of certain cross-border tax arrangements that exhibit characteristics indicative of potential aggressive tax avoidance, referred to as “hallmarks.” The directive aims to enhance tax transparency and fairness, ensuring that tax authorities have timely access to information regarding potentially harmful tax practices

Who does DAC6 apply to?

DAC6 applies to intermediaries—such as tax advisors, accountants, law firms, and banks. The directive applies to arrangements involving parties from multiple countries, with at least one being an EU member state.

What is reportable?

DAC6 outlines various characteristics, or hallmarks, that may signal a possible risk of aggressive tax avoidance. If a cross-border arrangement exhibits one or more of these hallmarks, it must be reported. Certain hallmarks only become reportable for tax purposes if they result in a tax advantage or benefit.

How can Finmatek help you?

Finmatek provides tailored solutions for the preparation and submission of DAC6 reports, ensuring that all reportable cross-border arrangements are documented accurately and submitted within the required deadlines.

  • Technical Expertise: Our team offers technical advice on identifying reportable arrangements and understanding the hallmarks that trigger reporting obligations under DAC6. This includes guidance on the complexities of the reporting requirements and the implications for your business.
  • Integration and Compliance: We can assist in integrating DAC6 reporting into your existing compliance frameworks, helping to streamline processes and ensure that your organization meets all regulatory requirements efficiently.
  • Data Management: We offer services related to data management and reporting, including converting reports into the necessary XML format for submission, which is crucial for compliance with DAC6 regulations