Advocaten / Avocats / Lawyers

Monday, 08 June 2020

Luxembourg to postpone DAC6 and DAC2 reporting deadlines

On 4 June 2020, the Luxembourg government announced that the negotiations on the European Commission proposal1 for a directive amending Council Directive 2011/16/EU dated 15 February 2011 that aims to postpone certain deadlines for reporting and exchanging information in international tax matters due to the COVID-19 pandemic has reached an agreement2 and an amending directive (the “Amending Directive”) is expected to be published in the coming weeks.

The Amending Directive gives EU members states the option (not the obligation) to apply a deferral of certain reporting obligations: three months under DAC2 – CRS reporting for the calendar year 2019 and six months for the reportable cross-border arrangements under DAC6.

On 4 June2020, the Luxembourg government has announced its intention to opt for both postponements. To effectuate this, the government will soon introduce a bill of law to modify the Luxembourg law of 18 December 2015 relating to the Common Reporting Standard (DAC2 – CRS, as amended) as well as to the Luxembourg law of 25 March 2020 relating to mandatory disclosure and exchange of reportable cross-border tax arrangements (DAC6). This bill of law is also expected to introduce a three months extension of the deadline for transmitting information relating to FATCA (pursuant to the Luxembourg law of 24 July 2015, as amended).

The Luxembourg government announced that until these legislative modifications come into force the (potential) sanctions for a late transmission of the relevant information under these respective laws should not apply.

Although the details of the Luxembourg bill of law are not yet known, the DAC6 reporting deadlines are expected to be postponed as follows:

  • The beginning of the 30-day period for reportable cross-border arrangements is likely extended from 1 July 2020 to 1 January 2021;
  • The deadline for the reporting of reportable cross-border arrangements implemented between 25 June 2018 and 30 June 2020 is likely extended from 31 August 2020 to 28 February 2021; and
  • The first exchange of information from Luxembourg to other EU member states as regards reportable cross-border arrangements is likely extended to take place on 30 April 2021 instead of 31 October 2020.

With the announced possibility to extend the DAC2 - CRS and FATCA deadlines by 3 months, the relevant reporting deadlines for Luxembourg financial institutions to report the information to the Luxembourg government are likely extended to 30 September 2020 (instead of 30 June 2020). The Luxembourg tax authorities (Administration des contributions directes) would then exchange the information received accordingly by 31 December 2020 (instead of 30 September 2020).

***

Tiberghien will monitor these developments closely and will report further when appropriate. In the meantime, if you have any further questions or require any assistance, please do not hesitate to contact your trusted advisor at Tiberghien or any of the authors of this publication.

Michiel Boeren - Partner (michiel.boeren@tiberghien.com)

Gauthier Mary - Senior Associate (gauthier.mary@tiberghien.com)

Emma Fontenaud - Associate (emma.fontenaud@tiberghien.com)


1 https://ec.europa.eu/transparency/regdoc/rep/1/2020/EN/COM-2020-197-F1-EN-MAIN-PART-1.PDF

2 https://data.consilium.europa.eu/doc/document/ST-8367-2020-REV-1/en/pdf

Tiberghien Brussels

Tour & Taxis

Havenlaan|Avenue du Port 86C B.419
BE-1000 Brussels
T +32 2 773 40 00
F +32 2 773 40 55

info@tiberghien.com

Tiberghien Antwerp

Grotesteenweg 214 B.4
BE-2600 Antwerp
T +32 3 443 20 00
F +32 3 443 20 20

info@tiberghien.com

Tiberghien Ghent

Esplanade Oscar Van de Voorde 1
BE-9000 Gent
T +32 9 265 95 51

info@tiberghien.com

Tiberghien Hasselt

Koningin Astridlaan 35
BE-3500 Hasselt
T +32 11 57 00 13

info@tiberghien.com

Tiberghien Luxembourg

23, Boulevard Joseph II
LU-1840 Luxembourg
T +352 27 47 51 11
F +352 27 47 51 10

info@tiberghien.com