June 30, 2020
Dutch Tax Authority issues guidance on reportable cross-border arrangements
On 30 June 2020, the Dutch Government issued a decree containing official guidance from the Dutch Tax Authority on reportable cross-border arrangements addressing the implementation of the European Union (EU) Directive on the mandatory disclosure and exchange of cross-border tax arrangements (referred to as DAC6 or the Directive).1
The newly issued decree of 30 June 2020 provides clarity on the interpretation of the Dutch Mandatory Disclosure Rules (MDR) legislation and how the Dutch Government anticipates the reporting process to operate.
The decree confirms once more that the Dutch MDR legislation is broadly aligned to the requirements of the Directive.2
In a separate decree on 26 June 2020, the Netherlands officially announced their deferral of the DAC6 filing deadlines by six months. Under DAC6, taxpayers and intermediaries are required to report cross-border reportable arrangements from 1 July 2020. However, Member States are permitted to defer by up to six months the time limits for the filing and exchange of reportable arrangements in accordance with the amendments to EU Directive 2011/16 adopted and announced by the Council of the European Union on 24 June 2020.3
The key highlights of the newly issued decrees are summarized below.
Decree of 30 June 2020 containing official guidance from the Dutch Tax Authority
Decree of 26 June 2020 addressing the deferral of time limits for the filing of reportable arrangements
Determining if there is a reportable cross-border arrangement raises complex technical and procedural issues for taxpayers and intermediaries. Taxpayers and intermediaries who have operations in The Netherlands should review their policies and strategies for logging and reporting tax arrangements so that they are fully prepared for meeting these obligations.
A detailed Global Tax Alert is forthcoming.
1. For background on MDR, see EY Global Tax Alert, EU publishes Directive on new mandatory transparency rules for intermediaries and taxpayers, dated 5 June 2018.
2. See EY Global Tax Alert Netherlands passes Act to implement Mandatory Disclosure Rules, dated 7 January 2020.
3. See EY Global Tax Alert, Council of the EU adopts amendments for deferral of MDR filing deadlines, dated 24 June 2020.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Belastingadviseurs LLP, Rotterdam