DAC 6 and Middle East Tax companies

Under the European Union (EU) DAC 6 Directive, cross-border arrangements that meet certain criteria are reportable in EU countries. The objective of this Directive is to identify potentially aggressive tax planning that could erode the EU taxable basis, and to this end, the EU tax authorities have already initiated the exchange of the information received for its review.

Although the Directive establishes the reporting obligations for EU intermediaries or EU taxpayers, it is recommended that ME based companies continue to monitor whether their arrangements could have a nexus with the EU and whether they trigger the reporting obligation. 

Special attention should be given to any sort of intercompany transactions between the EU and group companies in no or low tax countries including the transfer of assets, risks and functions.

We have developed this document in order to equip businesses with the key tax aspects and implications of the DAC 6 rules on ME based companies.