Gibraltar To Replace DAC 6 Reporting Requirements With OECD Model In Line With UK

As provided for in the Free Trade Agreement with the EU, HMRC earlier this month announced that the UK will now apply the OECD mandatory disclosure rules (“MDR”) in place of the DAC6 requirements. Following suit, Gibraltar has aligned its reporting requirements with MDR. On 21 January 2021, the Income Tax Act 2010 (Amendment) (EU Exit) Regulations 2021 (the “Regulations”) were published, which amends the Income Tax Act 2010 (the “Act”) by replacing the previous DAC 6 rules contained in the Act with MDR. The Regulations are deemed to have come into operation on 1 January 2021.

DAC6 requires EU intermediaries to file information on Reportable Cross Border Arrangements to their home tax authorities. The OECD MDR is narrower in its provisions, containing fewer reportable hallmarks.