ARTICLE · 20 AUGUST 2026

Recasting DAC: Simplification Meets Political Reality

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The European Union has proposed a comprehensive recast of its Directive on Administrative Cooperation (DAC), aiming to consolidate nine existing directives into a single framework while addressing longstanding concerns about reporting burdens.

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A proposed recast of the Directive on Administrative Cooperation (the “DAC”, the “DAC Recast”) has been presented as a central part of the EU’s tax simplification agenda.

Reports of early negotiations suggest that a number of debates have opened up between Member States on how best to achieve the desired simplification. Published on 24 June 2026, the proposal would consolidate the existing nine DACs into a single text, while making targeted changes to reporting obligations under the DAC framework.

The Irish Presidency of the Council of the EU is seeking agreement before the end of the year and has scheduled nine meetings to discuss the proposal. Two have already taken place, with early reports pointing to a number of areas of disagreement. Below, we have outlined the existing DAC framework, the key proposed changes to the framework and what has been reported so far on the progress of the negotiations.

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