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Germany Opts Out of Six-Month Delay for EU Tax Reports (1)

July 6, 2020, 8:44 PMUpdated: July 7, 2020, 7:12 PM

Germany is the latest country to announce it won’t give companies and advisers an additional six months to meet new European Union tax reporting requirements, while Austria is pushing back its deadlines to October.

The European Council agreed in June to let member states extend by up to six months the deadlines for reporting requirements under an EU directive, known as DAC6, which would have applied as of July 1 without the deferral. The directive requires companies and tax advisers to report potentially aggressive cross-border tax arrangements in the EU. Tax authorities will exchange the information as a check on aggressive tax planning.

Under the original deadlines for all EU countries, a 30-day rolling window for reporting new transactions would begin July 1, and reports on two years of historical transactions, from June 2018 to June 2020, would be due Aug. 31. The six-month extension pushes those deadlines to Jan. 1 and Feb. 28 next year, respectively.

“Germany will not postpone the deadline, the reporting obligation begins on July 1,” Kristina Wogatzki, spokesperson for Germany’s Finance Ministry, said Monday at a press conference.

Austria has moved the deadlines to October because the system for receiving reports isn’t yet ready, a spokesperson for the finance ministry told Bloomberg Tax Tuesday.

“Due to technical reasons the electronic system for the reporting of arrangements will be available” from October, the spokesperson said in an email.

Historic transactions, from June 2018 to June 2020, and reports on new arrangements implemented between July 1 and Oct. 1 will be due Oct. 31, while new arrangements implemented after Oct. 1 must be reported within 30 days, she said.

The Austrian Finance Ministry had told Bloomberg Tax Monday that Austria would keep the original deadlines of July 1, but might allow reports to be submitted later.

Finland also announced in June it wasn’t delaying deadlines. Other countries like the Netherlands, Ireland, Sweden, and Luxembourg have said they’ll opt for a six-month delay.

—With assistance from Barbara Tasch.

(Updates with additional information on Austria's plans in first, fifth, and sixth paragraphs in July 6 story. )

To contact the reporter on this story: Isabel Gottlieb in Washington at igottlieb@bloombergtax.com

To contact the editors responsible for this story: Meg Shreve at mshreve@bloombergtax.com; Vandana Mathur at vmathur@bloombergtax.com