DAC 2-FATCA and CRS: Extended deadlines for the exchange of tax information in COVID-19 crisis

News

DAC 2/FATCA and CRS: Extended deadlines for the exchange of tax information in the context of the COVID-19 crisis

5 June 2020

Luxembourg Tax Alert / Regulatory News Alert

Context and objectives

On 4 June 2020, Luxembourg's Ministry of Finance confirmed that the proposal for a European Commission directive aimed at postponing certain deadlines for declaration and exchange of information in tax matters due to the COVID-19 pandemic has passed the final stages of approval, although this is yet to be formally published.

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According to the plan in the proposal, the extensions are as follows:

  • DAC 2 : Member States will have the option to postpone the communication of information provided for in an EU directive introduced by DAC 2 with regard to data for the year 2019 for three months.
  • FATCA : A postponement of three months has also been planned concerning the information to be provided within the framework of FATCA, which relates to US citizen accounts abroad.

The extension of the deadline regarding the DAC 6 directive is the object of another tax alert.

Until these legislative adaptations can come into force, the sanctions for late transmission of information set out in the three aforementioned laws will not be applied. However, it should be underlined that the postponement of tax reporting deadlines is only temporary. All interested parties should undertake necessary efforts to comply in the additional time offered.


Next steps

As the text has been approved by the Coreper at EU level, it is now time for final sign off and publication which might take a matter of days before release in the Official Journal of the European Union.

On this basis, and following the notification to the Coordinating Body of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MCAA) to temporarily modify the notification, the Luxembourg Government will introduce a draft law as soon as possible to make the corresponding necessary changes to the amended law of 18 December 2015 relating to the Common Reporting Standard (CRS) so that the extended delay could be enforced.


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Contacts

Subject matter specialists

Eric Centi
Partner – Financial Services Tax
Tel : +352 45145 2162
ecenti@deloitte.lu

Bernard David
Partner – Tax Business Leader
Tel : +352 45145 2799
bdavid@deloitte.lu

Dany Teillant
Partner – Private Equity Tax Leader
Tel : +352 45145 2246
dteillant@deloitte.lu

Julien Lamotte
Partner – Financial Services Tax
Tel : +352 45145 3336
jlamotte@deloitte.lu

Nenad Ilic, CFA
Director - International Tax
Tel : +352 45145 2046
neilic@deloitte.lu

 


Regulatory Watch Kaleidoscope service

Simon Ramos
Partner – IM Advisory & Consulting 
Leader
Tel : +352 45145 2702
siramos@deloitte.lu

Jean-Philippe Peters
Partner – Risk Advisory
Tel : +352 45145 2276
jppeters@deloitte.lu

Benoit Sauvage
Director – RegWatch, 
Risk Advisory
Tel : +352 45145 4220
bsauvage@deloitte.lu

Marijana Vuksic
Manager – Risk Advisory
Tel : +352 45145 2311
mvuksic@deloitte.lu

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