Adopted Council Directive 2025/872 (DAC9)
Purpose and objective of the DAC Directive9
On April 14, 2025, the Council of the European Union (“EU”) adopted a new Directive 2025/872 (the “DAC9 Directive”), which aims to modify, simplify and expand cooperation and exchange of information between EU Member States following the new top-up tax.
Relationship with the top-up tax and reporting obligations
To ensure a minimum taxation of multinational enterprise groups and large domestic groups, Act No. 507/2023 Coll. on the Top-Up Tax establishes requirements for the reporting information for the determination of the Top-up tax (the “Report”). Each basic entity belonging to a multinational group shall be obligated to report locally/in the State where it is located. However, the information can also be reported centrally by the ultimate parent entity or other designated filing entity on behalf of the constituent entities, which relieves the constituent entities of the obligation to file the information locally.
Benefits and new developments in DAC9
Introduction of a standardised notification template
It is the DAC9 Directive that regulates and simplifies such central reporting by publishing a standard template for Top-up tax information return (“TTIR”). This will result in a harmonised reporting framework across the EU, which should bring greater transparency.
Deadline for first submission of the notification
The Top-up tax information return/TTIR notification has to be submitted for the first time to the tax administrator by 30 June 2026.
Automatic exchange of information
If a TTIR is filed centrally, the DAC9 Directive also defines and extends the rules for the automatic exchange of information within the EU. TTIR notifications should be exchanged between EU Member States up to 3 months prior to the filing deadline. An exception applies for the very first exchange of information between EU Member States, under which a time limit exceeds 6 months (i.e. until 31 December 2026).
Implementation in national legislation
EU Member States shall be obligated to implement the DAC9 Directive in their local legislation by 31 December 2025 at the latest and apply it from 1 January 2026.
