EU Moves Toward Compromise on Delaying Tax Reporting Deadlines

EU states will likely agree next week to a compromise to extend a deadline for companies to report cross-border taxes, an EU official said Thursday.

The directive known as DAC 6 is scheduled to take effect July 1, with companies required to report their last two years of tax arrangements to tax authorities by Aug. 31. The directive is part of a broader EU effort to crack down on aggressive tax planning. Countries are expected to exchange information to spot problematic tax arrangements quickly.

But the pandemic has stretched resources, leaving countries, companies, and tax advisers worried they wouldn’t be ready to meet those deadlines.

To address those concerns, the European Commission proposed May 8 that reporting deadlines be pushed back by three months. Some tax advisers are hoping for a longer extension.

EU member states, through the Committee of Permanent Representatives, are expected to endorse a final compromise proposal June 3, the official told Bloomberg Tax.

The Council of the European Union would then formally adopt the proposal by the end of June, the official said.

Check out Bloomberg Tax’s country-by-country roadmaps covering direct and indirect tax developments.