Malta has implemented the extended DAC 6 reporting deadlines, following the Commissioner for Revenue’s announcement back on the 2nd July 2020 to defer the first reporting deadlines arising as a result of the DAC 6 applicable legislation, namely, the Cooperation with other Jurisdictions on Tax Matters Regulations (SL 123.127).
The six-month reporting deferrals, have now been rendered applicable by virtue of the Cooperation with Other Jurisdictions on Tax Matters (Amendment) Regulations, 2020 (LN 315 of 2020) published on the 31st July 2020 (the “Regulations”), and moreover aim to attribute Maltese taxpayers and intermediaries with increased flexibility and additional time to navigate through their tax reporting obligations whilst subsisting operational activity and addressing the challenges brought about by the COVID-19 pandemic. Indeed, the Regulations come as a response to the European Council’s adoption of Directive (EU) 2020/876 of 24th June 2020 (which supersedes Directive 2011/16/EU), addressing the urgency to defer the deadlines for filing and exchanging information in the field of taxation owing to burdens being faced by several taxpayers due to the COVID-19 pandemic.
In terms of the Regulations, the following reporting deadlines must now be adhered to:
(i) Intermediaries and taxpayers must file information on reportable cross-border arrangements, the first step of which was implemented between 25th June 2018 and 30th June 2020, by the 28th February 2021 (reporting deadline was previously the 31st August 2020);
(ii) Information laid down in sub-regulation 13(7), must be communicated within one month of the end of the quarter in which the information was filed. The first information shall be communicated by the 31st April 2021 (reporting deadline was previously the 31st August 2020);
(iii) Under the current DAC 6 legislation, information to be communicated by the Commissioner for Revenue to the competent authority of any other Member State concerning Reportable Accounts of residents in that particular Member State, is reportable annually within nine months following end of year assessment during which the information became available. Pursuant to the newly introduced regulation 13(12), the latter period for communicating the said information that relates to the calendar year 2019, has been extended from nine months to twelve months.
(iv) Regulation 13(12) additionally stipulates that the thirty-day period for filing information laid down in sub-regulations 13(7)(a) and (g), in the case where a reportable cross-border arrangement is either made available or is ready for implementation, or where the first step in its implementation has been made between 1st July 2020 and 31st December 2020, shall commence by the 1st of January 2021. On the other hand, within the context of marketable arrangements under regulation 13(7)(b), the first periodic report shall be made by the intermediary by the 30th of April 2021.
On a final note, taxpayers and intermediaries will be informed as to the updated reporting systems in relation to reportable cross-border arrangements, which will be made available ahead of the above-mentioned new reporting deadlines. In this respect, such parties will be guided accordingly on how to prepare themselves through specific guidance which will be issued by the CfR within the coming months.