New reporting requirement for cross-border arrangements

26 June 2018 – The ‘Mandatory Disclosure Directive’ was passed by the Council of the European Union on 25 May 2018. In short, this Directive means that cross-border arrangements involving certain characteristics known as ‘hallmarks’ must be reported to the Dutch Tax and Customs Administration. The Directive came into force on 25 June 2018.

Implementation deadline

The Directive will not have an immediate effect. European Member States are required to implement the Directive in their national legislation by 31 December 2019 at the latest. The Dutch Ministry of Finance has announced that the Directive will be implemented in the coming period through legislation and regulations, of which the submission to Parliament is expected in the course of 2019. The expectation is that the ‘hallmarks’ will be defined in more detail at this time. At the moment, it is not completely clear precisely which things need to be reported.

How does the new reporting requirement affect you?

The new reporting requirement means that accountants, tax consultants and other intermediaries are obliged to report ‘cross-border arrangements’ to the Tax and Customs Administration as from 1 July 2020. At that time, the information that must then be supplied goes back to 25 June 2018.

In cases where no intermediary is involved in a cross-border arrangement, the taxable persons themselves may be obliged to make a report.

Want to know more?

Would you like to know more about the possibilities of avoiding an additional tax liability on the company car? If so, contact Erik Stroeve by email  or by telephone: +31 (0)88 277 24 55. He will be happy to assist you.

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