Report cross-border tax arrangements (Mandatory Disclosure Rules/DAC6)
As a result of the Dutch implementation of the European Directive Mandatory Disclosure Rules (MDR)/DAC6 intermediaries and/or taxpayers must report potentially aggressive cross-border tax arrangements to the Netherlands Tax and Customs Administration. These are tax arrangements involving residents of different countries and which could possibly be used to avoid taxation.
Are you responsible for reporting cross-border tax arrangements?
You can file a report via the data portal of the Netherlands Tax and Customs Administration as of 1 January 2021.
To log on to the data portal you need eHerkenning level 3 or higher. Apply for eHerkenning well in advance via the eHerkenning website. Do you want to file a report but is eHerkenning not available to you, for example because you are a private person? Then you can register for a username and password via the data portal. If you have questions about logging on to the data portal, please contact the contact center.
- Which arrangements need to be reported?
Cross-border arrangements that meet one of the hallmarks must be reported. You will find a list of these hallmarks in the DAC6 Directive. For a number of hallmarks, you only need to report the arrangement if the most important benefit (or one of the most important benefits) of the arrangement is gaining a tax advantage.
In the checklist you'll find a short overview of the hallmarks.
Guidance on cross-border arrangements subject to mandatory disclosure is available. In this guidance you find amongst others examples of arrangements subject to mandatory disclosure for each hallmark.
- Who files the report?
If you are involved as an intermediary in a cross-border arrangement that must be reported, you are responsible for reporting it. There are two exceptions to this rule. You are not required to report the cross-border arrangement subject to mandatory disclosure in the following cases:
- Another intermediary has already reported the arrangement. And this intermediary has given you a reference number as proof.
- You have a legal professional privilege.
The DAC6 Directive applies to all intermediaries. For example: tax advisers, lawyers, accountants, civil-law notaries, financial advisers, banks and trust offices.
The taxpayer for whom a cross-border arrangement is intended must report it himself in the following cases:
- Only an intermediary from outside the European Union is involved in the arrangement.
- The intermediary involved in the arrangement has invoked his legal professional privilege, and is therefore not required to do so.
- No intermediary at all is involved in the arrangement.
Are you not sure if anyone else involved in the arrangement has already reported it? When in doubt, report the arrangement yourself.
- What happens if you fail to report?
In that case you risk a substantial fine.
- When do you have to report?
The DAC6 Directive has retroactive effect. Between 1 January 2021 and 28 February 2021, you are therefore required to report the cross-border arrangements you are involved in from 25 June 2018 to 1 July 2020.
For reportable cross-border arrangements in which you are involved from 1 July 2020 to 1 January 2021, you report between 1 January 2021 and 31 January 2021 (the transitional period).
For cross-border arrangements in which you are involved as from 1 January 2021, you must always report within 30 days.
View a timeline showing these periods.
- On which taxes do you have to report?
You do report on:
- corporation tax
- income tax
- payroll tax
- dividend tax
- inheritance tax and gift tax
- most other taxes
You do not report on:
- VAT (sales tax)
- customs duties
- excise duties
- social security contributions
- How do you report?
Use the web form 'Disclosure of Cross-Border Arrangements (CBA)', in English. You can fill in this web form in the DAC6 data portal of the Netherlands Tax and Customs Administration. This can be done as from 1 January 2021. You need eHerkenning level 3 or higher to report a disclosure.
To log on to the data portal eHerkenning you need eHerkenning level 3 or higher. Apply for eHerkenning well in advance via the eHerkenning website. Do you want to file a report but is eHerkenning not available to you, for example because you are a private person? Then you can register for a username and password via the data portal. If you have questions about logging on to the data portal, please contact the contact center.
In the disclosure, you provide the following details:
- information about yourself
- information concerning the taxpayer and associated persons
- a summary of the content of the tax arrangement
- the relevant hallmarks
- the relevant national statutory provisions
- the value of the tax arrangement
- implementation date
- the relevant EU Member States
You can also report multiple disclosures at the same time by uploading an XML-file. For this you will need software from an (external) software supplier.
- What will happen to your disclosure?
Once you have reported a disclosure we will send you a reference number.
We forward your disclosure to a European database which is accessible to the tax authorities of the European Member States. In addition, we use the information from your disclosure within the Netherlands Tax and Customs Administration for supervisory purposes, for example.
Would you like to know more about how the reporting process works at the Netherlands Tax and Customs Administration? Download the process chart.
- Where can I find more information?
Answers to frequently asked questions about mandatory disclosure regulations are collected in the Mandatory Disclosure Rules/DAC6 Knowledge Database (in Dutch).
For questions about the mandatory disclosure legislation such as questions about the hallmarks, please contact the MDR team of the Netherlands Tax and Customs Administration by e-mail at MDRemail@example.com
If you have a question about filling in the Disclosure of Cross-Border Arrangements web form or XML-file, please contact the MDR team of the Netherlands Tax and Customs Administration by e-mail at MDRfirstname.lastname@example.org.
If you are a software developer or are planning to develop the software to report potential tax avoidance arrangements you can register for the required specifications and technical support at the website Digital Messaging Support (ODB). Regarding technical issues you can contact the service desk via: email@example.com