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August 13, 2020
Slovakia postpones MDR reporting deadlines for six months
On 9 July 2020, the Slovak National Council approved a six-month deferral to the European Union (EU) Directive on the mandatory disclosure and exchange of cross-border tax arrangements (referred to as DAC6 or the Directive). Under DAC6, taxpayers and intermediaries are required to report cross-border reportable arrangements from 1 July 2020. However, reports will retrospectively cover arrangements where the first step is implemented between 25 June 2018 and 1 July 2020.1
The deferral approval in Slovakia follows the adoption on 24 June 2020 by the Council of the EU of amendments to the EU Directive 2011/16 allowing Member States an option to defer, for up to six months, the time limits for filing and exchange of information on cross-border arrangements under DAC6.2
On 9 July 2020, the six-month deferral was approved at the national level by the Slovak National Council as part of a package of measures from the Ministry of Economy designed to improve the business environment. On 21 July 2020, the approved legislation was published in the Collection of Laws. In practice, the new reporting deadlines under the Slovak Mandatory Disclosure Rules (MDR) legislation are as follows:
Notwithstanding that the MDR reporting deadlines have now been officially deferred, 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 Slovakia should review their policies and strategies for logging and reporting tax arrangements so that they are fully prepared for meeting these obligations.
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. Council Directive (EU) 2020/876 of 24 June 2020 amending Directive 2011/16/EU to address the urgent need to defer certain time limits for the filing and exchange of information in the field of taxation because of the COVID-19 pandemic.
For additional information with respect to this Alert, please contact the following:
Ernst & Young, s. r. o., Bratislava