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04 June 2021

Cyprus announces extension of the non-application of administrative fines for DAC6 submissions until 30 September 2021 and an update to the Cypriot XML schema

On 4 June 2021, the Cypriot Tax Department (CTD) issued an announcement regarding a further extension to 30 September 2021 of the non-application of administrative fines for submissions with respect to 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 CTD had issued an earlier announcement extending the non-imposition of administrative fines for DAC6 submissions until 30 June 2021. In its latest announcement, the CTD has now announced its intention to not impose administrative fines for submissions of information under DAC6 until 30 September 2021, for the following cases:

  • Reportable cross-border arrangements that have been made (i.e., of which the first step of implementation has taken place) between 25 June 2018 and 30 June 2020 (i.e., within the transitional period of the Directive) and that had to be submitted by 28 February 2021.
  • Reportable cross-border arrangements that have been made (i.e., that were made available for implementation or were ready for implementation or the first step in the implementation has been made or for which aid, assistance or advice has been provided by a secondary intermediary) between 1 July 2020 and 31 December 2020 (i.e., within the six-month deferral period of the Directive) and that had to be submitted by 31 January 2021.
  • Reportable cross-border arrangements made or to be made between 1 January 2021 and 31 August 2021 (i.e., within the normal application period of the Directive) that had to be submitted within 30 days beginning on the day after they were/will be made available for implementation or were/will be ready for implementation or when the first step in the implementation has been/will be made, whichever occurred/will occur first.
  • Reportable cross-border arrangements for which secondary intermediaries provided/will provide aid, assistance or advice, between 1 January 2021 and 31 August 2021 (i.e., within the normal application period of the Directive), and had to submit information within 30 days beginning on the day after they provided/will provide aid, assistance or advice.

Update of sample XML file regarding the “associated enterprises” field

The CTD’s announcement also includes information on an update of the Cypriot sample XML file with added fields for the associated enterprises of the relevant taxpayer1 and related instructions on how these fields of the XML file should be completed.

In particular, the sample XML file posted on the CTD’s website has been updated with the addition of fields for the associated enterprises of the relevant taxpayer in cases where such associated person (i.e., direct shareholder of the relevant taxpayer) is either a physical person/individual, or a legal person/company, as well as where there is no such associated person to the relevant taxpayer.

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For additional information with respect to this Alert, please contact the following:

Ernst & Young Cyprus Limited, Nicosia

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Endnotes

  1. Article 7D(13)(a) of the Administrative Cooperation in the Field of Taxation Law L. 205(I)/2012, as amended.

Document ID: 2021-5631

 
 

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