DAC 6 – postponement of reporting obligations

by Florin Gherghel, Tax Manager Ensight Finance

New reporting obligations to the tax authorities should have entered into force from July 1, 2020 regarding the cross-border arrangements with potential risk of avoidance of tax obligations, according to the EU DAC 6 Directive.

The European Directive regarding the postponement of reporting deadlines was implemented in Romania through the Emergency Ordinance 107/2020, published in the Official Gazette no. 579 / 01.07.2020.

Thus, intermediaries or companies must report the reportable cross-border arrangements for the period July 1, 2020 – December 31, 2020 in 30 days starting with January 1, 2021 (the previous deadline was July 1, 2021), practically the arrangements must be reported in January 2021.

Reportable cross-border arrangements for the period from 25 June 2018 to 30 June 2020 must be reported by 28 February 2021 (the previous deadline was 31 August 2020).

We are still waiting for the tax authorities to publish the guide for the application of these provisions, as there are many question marks regarding the reportable transactions.

We remind you the significant fines for non-compliance: (i) failure to report or reporting with delay by intermediaries or relevant taxpayers is sanctioned with a fine between RON 20,000 and RON 100,000; (ii) the non-fulfillment by the intermediary of the obligation to notify another intermediary or of the relevant taxpayer, in case the intermediary is subject to the professional privilege, is sanctioned with a fine between RON 5,000 and RON 30,000.

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