The Cyprus Tax Department announced that the European Council Directive 2018/822 known as DAC6, is expected to be incorporated into the Cyprus legislation within the current month.
The aim of this new legislation is to tackle tax avoidance and prevent harmful tax practices by closing loopholes in the tax legislations of the member states. DAC 6 affects the EU based intermediaries or where there is no EU based intermediary the tax payers themselves and obligates them to report all cross-border arrangements involving at least one EU country that fall into 5 broadly defined categories, called ‘ Hallmarks’ which contain one or more elements that could be considered as harmful and aggressive tax structuring. The legislation includes significant risk of sanctions both for legal entities and physical persons in case of non-compliance.
Arrangements which are reportable cover transactions, payments, schemes and structures, verbal agreements, agreements as from 25 June 2018
As some of the deadlines for the submission of information introduced by the Directive have expired, the deadline for the submission of DAC6 information is extended until 31 March 2021, in the following cases:
Find below announcement sent on July 2020 regarding DAC6 https://www.gstaxconsultants.com/news-articles/162-dac6-reporting-deadlines-extension-for-6-months