Proposed Act in Relation to Reportable Cross-Border Arrangements – DAC 6

| Reading Time: 2 Min

As we have already informed you in Newsletter No 4/2018, Member States are obliged to introduce an automatic exchange of information on cross-border arrangements with the potential for aggressive tax planning and tax avoidance, and are thus equally obliged to transpose the Directive on administrative cooperation in the field of taxation (‘DAC 6’) into local legislation by no later than 31 December 2019.

For this reason, the Ministry of Finance of the Slovak Republic has submitted a proposal to amend Act No 442/2012 Coll. on International Assistance and Cooperation in Tax Administration, as amended, and to implement DAC 6.

The aim of the submitted material is to increase tax transparency and thus the effectiveness of combating undesirable cross-border corporate tax practices. The bill is intended to deter mediators and taxpayers themselves from using potentially aggressive tax planning practices.


It follows up on the existing dynamic developments in the area of automatic exchanges of information and will implement an automatic exchange of information on cross-border reporting between the relevant authorities of EU Member States. In order to ensure such an automatic exchange of information, the Act will introduce an obligation for so-called liable persons (intermediaries or relevant taxpayers, i.e. users) to submit information on cross-border arrangements that meet at least one of the characteristics specified in Annex No 1a of the bill. The specified obligation applies to intermediaries, that is, persons who propose cross-border arrangements and offer them on the market, or who prepare such arrangements, make them available to taxpayers, or manage their application for the taxpayer. Intermediaries may also be persons who provide assistance, support, or advice to others in the course of such activities. Under certain circumstances stipulated by law, the reporting obligation also concerns taxpayers themselves.

The proposed time limit for submitting information on reportable arrangements is 30 days after certain legal conditions are met. The Financial Directorate of the Slovak Republic will publish the format of reporting on its website, and reports should be submitted electronically via the tax administration portal.

A fine of up to €30,000 (depending on the severity, value of the arrangement, duration, consequences, etc.) will be imposed for failure to comply with the obligation to report information (or make a declaration) within the specified scope and time limit, and such a fine may be imposed repeatedly.

The proposed effective date of the Act is 1 July 2020. However, it should again be emphasised that the reporting duty will apply retroactively to the above-mentioned types of transactions effected beginning 25 June 2018, and such transactions will have to be reported by 31 August 2020.

Your Contact Persons