Are you a financial service provider or an entrepreneur involved in cross-border (financial) contstructions? You have to report cross-border constructions in which you are a party and which may be used to avoid taxes.
You have to report such constructions to the Dutch Tax and Customs Administration (Belastingdienst). This duty to report applies to intermediaries (financial service providers) and entrepreneurs. This is a result of the European Mandatory Disclosure Rules (MDR)/DAC6.
Which cross-border constructions to report?
You must report tax constructions in which for instance:
- residents of different EU countries or of an EU country and a third country are involved
- the tax construction might be used to evade taxes
You can find the hallmarks for constructions you should notify in Annex IV of the EU regulation or on the website of the Dutch Tax Administration (in Dutch).
Constructions you have to report deal with among others
- corporate income tax
- income tax
- wage tax (payroll tax)
- dividend tax
- inheritance tax and taxes on gifts
- most other taxes
Who should report?
The duty to report applies to all taxpayers (entrepreneurs) for whom the notifiable construction is set up.
The duty to report applies to all intermediaries such as:
- tax consultants
- financial advisers
- trust offices
Where and when to report?
You have to report notifiable cross border constructions within 30 days. You should use the Report Cross Border Arrangements (CBA) form in the Portal Mandatory Disclosure / DAC6.
Reporting past constructions
You will have to provide information on any relevant constructions dating back to 25 June 2018. If you know of any cross-border constructions set up to avoid tax and you don't report it, you may be fined or prosecuted.
- you should report cross-border arrangements that took place between 25 June 2018 and 1 July 2020 before 28 February 2021
- cross-border arrangements from 1 July 2020 to 1 January 2021, you must report between 1 January 2021 and 31 January 2021 (the transitional period).