Long discussions ensued at the European level following the 08 May 2020 directive proposal aimed at responding to the urgent need to postpone certain deadlines for the declaration and exchange of tax information due to the COVID-19 pandemic (the “Amending Directive“), following which a compromise was reached during the 03 June 2020 Coreper, or Permanent Representatives Committee, meeting.

Thus, the Member States will be granted the option to extend by 3 months the deadlines by which to communicate the information under Article 8 (6) (b) of Directive 2011/16/EU, as introduced by Directive 2014/107/EU (“DAC 2“), with respect to data for 2019, as well as by 6 months the deadlines for the communication and exchange of information under Directive 2018/822/EU (“DAC 6“).

The Amending Directive should thus be published as soon as possible in the Official Journal of the European Union, provided that the Council officially endorses the proposal.

The Luxembourg government may then introduce a bill (the “Bill“) to thusly amend the Law of 18 December 2015 on the common standard reporting declaration (CRS), (the “CRS Law”) as well as the Law of 25 March 2020 on cross-border arrangements subject to a declaration (the “DAC 6 Law“).

In a 04 June 2020 communiqué, the Finance Ministry specified that the Bill will also introduce a 3-month extension of the deadline for the transmission of the information under the Law of 24 July 2015 on FATCA, as amended (the “FACTA Law“).

While waiting for the adoption of the Bill, the Finance Ministry specified that the sanctions for the late transmission of information under the CRS Law, DAC 6 Law and FATCA Law will not be imposed.

By Héloïse CUCHE, Lawyer.