Report cross-border tax arrangements (Mandatory Disclosure Rules/DAC6)
The European Directive Mandatory Disclosure Rules (MDR)/DAC6 will come into effect on 1 January 2021. As a result of the Dutch implementation of this Directive, intermediaries and/or taxpayers must report potentially aggressive cross-border tax arrangements to the Tax and Customs Administration. These are tax arrangements involving residents of different countries and which could possibly be used to avoid taxation.
Because of COVID-19 it has been decided that mandatory disclosure in the Netherlands will start on 1 January 2021 instead of 1 July 2020. This website sets out the new deadlines.
Are you responsible for reporting cross-border tax arrangements?
You can file a report in the data portal of the Tax and Customs Administration as of 1 January 2021.
- 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 a cross-border arrangement is intended for 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 tax arrangement.
When in doubt, report it 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 require 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.
- 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 I report?
Use the 'Disclosure of Cross Border Arrangements form (CBA)', in English. You can fill in this form via the Tax and Customs Administration's data portal. This can be done from 1 January 2021.You need eHerkenning level 3 (companies) or DigiD (private individuals) to file a report.
In the report, 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 file multiple reports at the same time using an XML upload function. For this you will need software from an (external) software supplier.
- What will happen to my report?
Once you have filed a report we will send you a reference number.
We forward your report to a European database accessible to the tax authorities of the European Member States. In addition, we use the information from your report 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 Tax and Customs Administration by e-mail at MDRfirstname.lastname@example.org
If you have a question about submitting the Cross-Border Arrangements Reporting form, please send an e-mail to the MDR team of Tax and Customs Administration Contact Centre at MDRemail@example.com
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, IT-related questions (e.g. about the required technical specifications of the various fields) and support at the website Digital Messaging Support (ODB) of the Tax and Customs Administration. Or contact the service desk via: firstname.lastname@example.org