Exchange of information & tax transparency – under DAC6 and DAC7 rules
Rules on the automatic exchange of information on reportable cross border arrangements under the DAC6/MDR legislation are already in full effect. Intermediaries and relevant taxpayers should in principle be in a position to identify, assess and report reportable arrangements but also should be in a position to document their compliance efforts by maintaining appropriate books and records for their cross-border arrangements.
In November 2023, the so-called DAC7 -the law requiring the automatic and mandatory exchange of information reported by platform operators came into force. In January 2024, the Cyprus Tax Department has clarified that sellers residing in Cyprus for tax purposes should also fall within the scope of DAC7 reporting.
The first DAC 7 reporting deadline was finally extended to 16 February 2024.
