Mandatory Disclosure Rules in the EU. The European Union (EU) has introduced the MDR Directive (also known as DAC-6) to increase fiscal transparency concerning aggressive cross-border tax planning.
We have developed tools and policies to identify and report the MDR cross-border arrangements to assist our clients in complying with the MDR.
Our in–house tax experts and respective account managers in our EU-based offices review all the transactions/arrangements for client entities in real time to determine the MDR reportable arrangements. If reportable, we will undertake the necessary MDR reporting within the statutory timeline of 30 days. We work together with other intermediaries to mitigate any overlap of MDR compliance.
Our MDR services include:
Reporting & maintenance services
- A review of EU cross-border arrangements in real-time.
- Liaison and coordinate with the client and the other service providers involved in the arrangement.
- If reportable, conclude with other intermediaries who will undertake the MDR reporting.
- File the MDR reporting with the tax authorities within statutory timelines, as and where applicable.
- Maintenance of adequate MDR analysis, reporting, and documentation.
- Generate periodic MDR summary reports for all reportable and non-reportable cross-border arrangements for documentation purposes.
Preferred intermediary services
We can be appointed as a "Preferred MDR intermediary" for MDR review and reporting in cases where an Amicorp EU office is involved as an intermediary for any EU cross-border arrangement. That Amicorp office would undertake to comply with the MDR for our client entity and take the lead in coordinating other intermediaries involved. This would help our clients centralize the MDR compliance with one intermediary, making it easy for them to track, monitor, and mitigate duplication of work and fees. This way, they can rest assured that MDR compliance for all their cross-border arrangements involving EU countries is covered.
Effective dates and deadlines
The MDR Directive entered into force on June 25, 2018, and was implemented in most EU countries by early 2021. The provisions will be applied retroactively to all reportable arrangements starting June 25, 2018.
- All the reportable arrangements where the first implementation step was taken (or significantly amended) between June 25, 2018, and December 31, 2020, were required to be reported by the intermediary by February 28, 2021.
- From January 1, 2021, the reportable arrangements must be disclosed within 30 days from the date the arrangement was made available, ready for implementation, or when the first step was made.
Non-compliance with the MDR may trigger substantial penalties as established by each jurisdiction, which can go up to several hundred thousand euros.
For more details on MDR, the hallmarks, and the main benefit test, read our MDR Memo and the MDR Flowchart.
For more information on responding to the MDR Directive and taking advantage of Amicorp's services, please contact your Amicorp Account Manager, Sales Manager, or your nearest Amicorp office.
Our professionals
Eric Boes, Global Head – Regulatory Reporting and Tax Compliance Services
Shweta Aggarwal - Assistant Manager
