The 6 th Directive on Administrative Cooperation (commonly known as ‘’DAC6’’),
is a European Directive adopted on 25 May 2018 and has been transposed into
Cyprus legislation in March 2021. It plays a significant role in our life from tax
perspective as it captures several ‘’cross border arrangements’’ that contain at
least one of the characteristics or features of cross-border arrangements, called
hallmarks. When an arrangement falls under the scope of DAC6 (subject to
certain conditions), it should be reported to the local tax authorities. Failure to
report, an administrative fine up to EUR20.000 is applied either to
intermediaries or taxpayers.
In essence, every transaction taking place from 25 June 2018 onwards should be
assessed whether it falls under the DAC6.
Our specialised team can assist you with the following:
• Assessment of particular transactions in determining whether the
transaction should be reported or not;
• Preparation of defensive file in order to justify the DAC6 treatment of
• Assistance with the reporting of the transaction under the DAC6.
• Group assessment of transactions. We classify the group’s family activities
and we identify the red flags that you should be aware of.
• Tailored DAC6 training/seminars depending on the client’s activities and