Luxembourg DAC 6 Reporting specifications released

16/10/20

In Brief

The Luxembourg tax authorities released on 14th October 2020 the Luxembourg DAC 6 reporting specifications. A draft DAC 6 reporting XSD schema has been published allowing the reporting of DAC 6 arrangements on the “MyGuichet” portal as from 1 January 2021.

In detail

On 14 October 2020, the Luxembourg tax authorities (“LTA”) published the Luxembourg draft DAC 6 XSD schema alongside a “MyGuichet” user guide. MyGuichet is already fostered by the Luxembourg government for a wide range of online services, such as Country-by-Country reporting (DAC 4) and corporate tax returns.

The LTA will hereby provide two ways to report DAC 6 reportable cross-border arrangements via MyGuichet:

  1. A manual encoding of relevant data directly into the MyGuichet portal; or
  2. An upload of a DAC 6 XML report on the portal.

Irrespective of the modality chosen, declarant (i.e. intermediaries and/or relevant taxpayers) should bear in mind the following main features of the reporting process:

  • Information reported either by the relevant taxpayers or by the intermediaries (e.g. relevant hallmarks and legal provisions, affected parties and Member States, related parties etc) is more qualitative than quantitative and would need to rely on a thorough DAC 6 analysis rather than from a mere extraction of an IT system.
  • The reporting language must be English for the summary of the content of the reportable cross-border arrangement and the details of the national provisions that form the basis of the reportable cross-border arrangement as well as any other free text fields regardless of the language used for the process.
  • The user guide confirms that the LTA will issue an “Arrangement ID” and a “Disclosure ID” to the declarant for each filing. The Arrangement ID is related to the content of the DAC 6 reportable cross border arrangement. The first declarant must provide this Arrangement ID to every concerned person of the same arrangement in Luxembourg or in another EU member state he is aware of. The Disclosure ID is provided for each disclosure and is a different to the Arrangement ID. The Disclosure ID is reserved to the declarant and must not be communicated. The Disclosure ID will be needed to consult again the filing performed and in the case of an amended filing.
  • The LTA will issue after the filing of a DAC 6 report for a given arrangement, a “certificate of disclosure” that could be used as a proof by other declarant wishing to apply for a waiver of their own reporting obligation (at least in Luxembourg).
  • The declarant has to provide the name and contact details of a contact person to which the LTA can reach out to in case of questions.

The DAC 6 module of MyGuichet is announced to go live on 1 January 2021.

What’s next?

With the DAC 6 reporting deadlines approaching fast, intermediaries and taxpayers (that could not always rely on an intermediary to report their arrangements) should ensure to be ready to meet their DAC 6 reporting obligations.

This means notably to finalize ongoing DAC 6 impact assessments, drafting DAC 6 procedures, analyse relevant arrangements and arrange for a suitable assessment and reporting solution.

Our DAC 6 dedicated experts team can provide you with a full range of services around those topics including:

  • performing DAC 6 (impact) analysis;
  • drafting of procedures and controls matrix;
  • providing a one-stop DAC 6 digital solution, allowing you to assess and convert, as the case may be, DAC 6 reportable arrangements into the appropriate Luxembourg XML filing format for easy record keeping and filing of your DAC 6 reportable arrangements;
  • providing an e-learning solution for large-scale trainings on DAC6 and;
  • facilitating dedicated trainings.

We will be pleased to organise a meeting with you to further discuss the impact of DAC 6 on your organisation and how we could assist you going forward.

1. PwC Luxembourg (www.pwc.lu) is the largest professional services firm in Luxembourg with 3,000 people employed from 75 different countries. PwC Luxembourg provides audit, tax and advisory services including management consulting, transaction, financing and regulatory advice. The firm provides advice to a wide variety of clients from local and middle market entrepreneurs to large multinational companies operating from Luxembourg and the Greater Region. The firm helps its clients create the value they are looking for by contributing to the smooth operation of the capital markets and providing advice through an industry-focused approach.

2. The PwC global network is the largest provider of professional services in the audit, tax and management consultancy sectors. We are a network of independent firms based in 157 countries and employing over 276,000 people. Talk to us about your concerns and find out more by visiting us at www.pwc.com and www.pwc.lu.

Contact us

Murielle Filipucci

Partner, PwC Luxembourg

Tel: +352 49 48 48 3118

Kerstin Thinnes

Tax Partner, PwC Luxembourg

Tel: +352 49 48 48 3177

Pierre Kirsch

Tax Partner, PwC Luxembourg

Tel: +352 49 48 48 4031

Géraud de Borman

Tax Partner, PwC Luxembourg

Tel: +352 49 48 48 3161

Oliver Weber

Partner, Asset and Wealth Management Leader, PwC Luxembourg

Tel: +352 49 48 48 3175

Sami Douénias

Tax Partner, PwC Luxembourg

Tel: +352 49 48 48 3060

Iryna Sansonnet-Matsukevich

Tax Partner, PwC Luxembourg

Tel: +352 49 48 48 3185

Camille Perez

Director, PwC Tax Information reporting Sàrl, PwC Luxembourg

Tel: +352 49 48 48 4618

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