Mandatory Disclosure Rules (DAC6)

As of 1 January 2021 through the amending Law on Administrative Cooperation in the field of taxation of 2021, the provisions of DAC6 (EU Council Directive 2018/822) are effective.

Disclosure requirement and application
The Cyprus DAC6 Law requires from intermediaries and relevant taxpayers to submit information to the Cyprus Tax Authorities, in respect of cross border arrangements that meet at least one of the “hallmarks”, as outlined in the Law.
The above is applied retroactively, as of 25 June 2018. Intermediaries and relevant taxpayers must review the necessary information relating to transactions implemented on or after that date.

Reporting deadlines
As from 1 January 2022, a 30-day rolling window applies for submission of Reportable cross-border arrangements (RCBAs).

Filing process
Information on RCBA can be submitted by intermediaries and taxpayers by uploading an XML file register in the Government Gateway Portal “Ariadni”.
Intermediaries involved in the RCBA, or in the absence of intermediaries, taxpayers are obliged to file information to the Cyprus Tax Department.
Practising lawyers are excluded from the obligation to file information to the Cyprus Tax Department, where such information falls within the scope of Legal Professional Privilage. They are however required to notify, within ten days, the intermediary or the relevant taxpayer.

Request of information
For the purposes of ascertaining whether there is compliance with the provisions of the legislation, the Tax Authorities may require, with written notice, to receive information within 14 days from the intermediary or the relevant taxpayer.

Administrative fines
The below table summarizes the penalties for non-compliance per the type of infringement:

*The maximum penalty imposed for non-compliance will not exceed the amount of €20.000 per arrangement.