What is DAC6?

The EU Council Directive 2018/822 (DAC6) aims to target potentially aggressive tax planning schemes, CRS avoidance schemes and schemes whereby the beneficial ownership in a structure is obscured - so-called arrangements - which involve EU taxpayers and have a cross-border element. EU intermediaries, or in some cases taxpayers, are mandatorily obliged to disclose such cross-border arrangements to the local tax authority if specific hallmarks are met. The EU member states will exchange the data under the automatic exchange of information.  

What is a reportable cross-border arrangement?

An arrangement is cross-border if it involves at least one EU Member State or an EU Member State and a third country. 

It is reportable if it fulfils one or more characteristics, or hallmarks. Some of the hallmarks will only be fulfilled if one of the main objectives is to obtain a tax advantage (main benefit test).

Who is in scope of DAC6?

  • EU intermediaries - for example tax advisors, lawyers and other service providers who design, promote or assist in the implementation of an arrangement
  • EU relevant taxpayers - a natural or legal person to whom an arrangement is implemented

Who reports under DAC6?

  • The EU intermediary has the primary reporting obligation
  • If more than one EU intermediary is involved, a reporting obligation lies with all intermediaries, however an intermediary can be exempt from reporting assuming it has proof that another intermediary has already reported 
  • The reporting obligation shifts to the EU relevant taxpayer if:

    - There is no EU intermediary

    - There is no intermediary at all (in-house arrangement)

    - The EU intermediary has a waiver right due to legal professional privilege

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DAC6 Timeline

25 June 2018


The DAC6 entered into force

1 July 2020
(1 January 2021*)

Application period starts, and any reportable cross-border arrangement implemented on or after this date is to be reported within 30 days (rolling reporting)

31 August 2020
(28 February 2021*)

A one-off reporting is due for any eportable cross-border arrangements implemented between 25 June 2018 and 30 June 2020 (retrospective period)

31 October 2020
(30 April 2021*)

First automatic exchange of information between member states

*In light of the COVID-19 situation, a majority of the member states have opted for a six-month deadline deferral. Some have however chosen to apply a shorter deadline deferral or not to defer the deadlines at all.

DAC6 Hallmarks* 

Generic hallmarks linked to the main benefit test

E.g. substantially standardised documentation which need not to be substantially customised for implementation

Specific hallmarks linked to the main benefit test 

E.g. Conversion of income into capital which is taxed at a lower rate or tax exempt, circular transactions

Specific hallmarks related to cross-border transactions

E.g. deductible cross-border payments to a recipient which is subject to no or almost no tax, relief from double taxation is claimed for the same item in two states 

Specific hallmarks concerning automatic exchange of information and beneficial ownership

E.g. undermining or eliminating reporting obligations under CRS, non-transparent legal or beneficial ownership chains

Specific hallmarks concerning transfer pricing

E.g. use of unilateral safe harbour rules, transfer of hard-to-value intangibles, restructuring resulting in significant profit shifting

*This is a generic and non-exhaustive overview. Please note that one must refer to the specific hallmarks as set out in the domestic legislation of the relevant jurisdiction.

Overwhelmed? 

We can support intermediaries but also affected taxpayers in fulfilling their DAC6 reporting obligations in the following ways:

  • Impact analysis: KENDRIS can assist intermediaries or taxpayers in assessing whether and, if so, to what extent they are affected by DAC6
  • Identification of reportable arrangements: We can support clients in analysing whether cross-border arrangements meet any of the DAC6 hallmarks and must therefore be reported to the local tax authority
  • DAC6 reporting: Thanks to our AEOI Reporting Solution, KENDRIS can support clients with the creation of DAC6 reports for the retrospective and the rolling reporting period
  • DAC6 Compliance Program: We consult clients on how to implement due diligence processes in order to identify reportable cross-border arrangements in time

Contact Us 

If you would like to outsource your report generation to us, or just to get some guidance, get in touch and we will be happy to help.

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