Based on the 6th amendment to the Directive on administrative cooperation in the field of taxation (“DAC VI”), EU member states (including the Czech Republic) have introduced an obligation for businesses to report selected cross-border transactions and other arrangements to taxation authorities. The objective is for the tax administrator to gain better insight into the use of tax regulations and aggressive tax planning. The start of the reporting obligation was planned for the first half of this year, but the Czech Republic has made use of the possibility to postpone the reporting deadlines to the beginning of 2021.
We have already informed you about the topic in the article DAC 6: New Obligation to Report Certain Transactions to Taxation Authorities in Advance.
In the Czech Republic, the Directive was implemented as part of the implementation package – Parliamentary Document No. 572 that was published on 14 August 2020 in the Collection of Laws and which came into effect on 1 September 2020.
In relation to this matter, the Czech Republic has made use of the possibility offered by the EU to extend the reporting deadlines. The respective government decree was published in the Collection of Laws on 10 September 2020 and will come into effect on 25 September 2020.
The deadlines will be extended as follows:
- Historical arrangements whose first implementation step was carried out between 25 June 2018 and 30 June 2020 – by 28 February 2021 at the latest;
- Historical arrangements whose first implementation step was carried out between 1 July 2020 and 29 August 2020 – by 30 January 2021 at the latest;
- Standard arrangements that were made available or ready for implementation or whose first step was carried out or for which an ancillary intermediary provided aid, assistance or advice by 31 December 2020 – by 30 January 2021 at the latest; and
- In case of data updates relating to the changes of standardised arrangements carried out by 31 December 2020 – by 30 April 2021 at the latest.
In this regard, the Financial Administration has further stated that the electronic notification should be made available on the tax portal in the second half of October 2020.