Mandatory Disclosure Regime (MDR) (2024)

What EY can do for you

TheEuropean Union (EU) Mandatory Disclosure Regime (MDR) will lead to extensive reporting obligations for a relatively wide range of tax arrangements, and there are no minimum threshold exceptions. Taxpayers and intermediaries must implement policies, procedures and processes to identify and capture details of transactions that they will need to disclose. On complex arrangements, taxpayers will need consult with their advisors. Penalties can be significant.

EY teams across the world can help taxpayers and intermediaries identify and manage their obligations under the MDR by:

• Conducting strategy sessions to discuss and identify the impact of the MDR on their European and global tax strategy
• Assisting in the development of process guidelines and/or policies for MDR reporting, from the day-to-day identification of reportable arrangements up to the data submission to the tax authorities
• Conducting MDR workshops for the executive-layer teams (e.g., tax, M&A, internal compliance, transfer pricing, HR and law)
• Providing MDR training programs to operational teams
• Offering advice on how to evaluate a particular transaction that you are undertaking
  

Also, MDR Web — the EY cross-border assessment tool, described in the video above — is designed to evaluate, log and report cross-border arrangements. Through it, you can also access our technical guidance on the interpretation of Directive on Administrative Cooperation 6 (DAC 6) and country legislation.

Start your discussion on MDR compliance today — and, through careful planning, position yourself for readiness on Day One.

Legislative overview

To increase fiscal transparency across the EU, the DAC 6 entered into force on 25 June 2018, requiring intermediaries — such as EU-based tax consultants, banks and lawyers — to report cross-border transactions and tax arrangements that the EU considers potentially aggressive, featuring certain hallmarks (such as deductible payments exempt of taxation at recipient level). If there are no intermediaries that can report, the obligation will shift to the taxpayers.

Under the MDR, cross-border arrangements where the first step is taken after 25 June 2018 and before 1 July 2020 must be reported no later than 31 August 2020, and Member States will automatically exchange this information. After 1 July 2020, intermediaries and taxpayers will be required to report within 30 days of a triggering event in respect of any tax arrangements.

Member States must adopt and publish domestic legislation to comply with DAC 6 by 31 December 2019. Some Member States may require earlier reporting and extend the scope of domestic legislation beyond the requirements of the Directive — for instance, to cover VAT, domestic arrangements or introduce additional hallmarks.

DAC 6 updates

This monthly newsletter provides insight and technical information leading up to DAC 6 implementation on 1 July 2020.

Designing and implementing your long-term compliance program for the EU mandatory disclosure rules (MDR) (January 2020)

Alerts about MDR

Are you staying up-to-date on timely analysis related to MDR? Check out the latest developments and country-specific updates.

• Latvia publishes draft proposal to implement Mandatory Disclosure Rules (2 March 2020)
• Croatia passes Law to implement Mandatory Disclosure Rules (27 February 2020)
• Sweden issues final proposal on Mandatory Disclosure Rules to Parliament (26 February 2020)
• Poland: MDR reports for cross-border tax arrangements must be re-submitted to the National Fiscal Administration in 2020 (17 February 2020)
• Gibraltar enacts final legislation to implement Mandatory Disclosure Rules (14 February 2020)
• Malta enacts legislation to implement Mandatory Disclosure Rules (14 February 2020)
• Romania enacts final MDR legislation (14 February 2020)
• Portugal publishes revised draft legislation on Mandatory Disclosure Rules (10 February 2020)
• Ireland enacts final MDR legislation (4 February 2020)
• UK mandatory disclosure rules come before Parliament; HMRC releases consultation responses (4 February 2020)
• Luxembourg State Council issues opinion on draft MDR legislation – Application of legal professional privilege to be revised (28 January 2020)
• Romania issues draft mandatory disclosure regime legislation (24 January 2020)
• Poland: New Form MDR-3 to be submitted by management boards by early 2020 for fiscal year 2019 (23 January 2020)
• Danish Parliament enacts final MDR legislation (21 January 2020)
• Finland passes Act to implement Mandatory Disclosure Rules (16 January 2020)
• Belgium publishes legislation on Mandatory Disclosure Rules(8 January 2020)
• Netherlands passes Act to implement Mandatory Disclosure Rules(7 January 2020)
• Belgium publishes draft proposal on Mandatory Disclosure Rules (17 December 2019)
• Sweden publishes new draft legislation on Mandatory Disclosure regime (12 December 2019)
• Belgium issues draft mandatory disclosure regime legislation(5 December 2019)
• Finland publishes draft proposal on Mandatory Disclosure Rules (26 November 2019)
• Austria passes bill to implement Mandatory Disclosure Rules (20 November 2019)
• Netherlands issues Q&A notes as part of legislative process for mandatory disclosure regime(18 November 2019)
• Bulgaria publishes draft proposal on Mandatory Disclosure Rules(7 November 2019)
• [Video] Mandatory Disclosure Regime draft legislation Ireland (5 November 2019)
  
• Ireland publishes draft proposal on Mandatory Disclosure Rules(5 November 2019)
• Cypriot draft MDR bill officially enters public consultation procedure(24 October 2019)
• [Video] Mandatory Disclosure Regime legislation France(23 October 2019)
• France publishes legislation on Mandatory Disclosure Rules(23 October 2019)
• Ireland publishes draft legislation on Mandatory Disclosure Rules(21 October 2019)
• Slovakia publishes final legislation implementing Mandatory Disclosure Rules(16 October 2019)
• [video] Mandatory Disclosure Regime German draft legislation(10 October 2019)
• German Government issues update on draft Mandatory Disclosure Rules(10 October 2019)
• Estonia publishes draft proposal on Mandatory Disclosure Rules(7 October 2019)
• German Ministry of Finance amends draft Mandatory Disclosure Rules(30 September 2019)
• Czech Government publishes revised draft legislation on Mandatory Disclosure Rules: A detailed review(5 September 2019)
• Czech Government publishes revised draft legislation on Mandatory Disclosure Rules(27 August 2019)
  
• [video]Mandatory Disclosure Regime Luxembourg draft legislation(21 August 2019)
  
• Luxembourg submits draft law implementing EU Mandatory Disclosure regime to Parliament(21 August 2019)
  
• [video] Mandatory Disclosure Regime UK Consultation Document(19 August 2019)
  
• United Kingdom publishes draft proposal on Mandatory Disclosure Rules(19 August 2019)
• Hungary passes act to implement Mandatory Disclosure Rules(16 August 2019)
• Luxembourg Government submits draft law implementing Mandatory Disclosure Rules to Parliament(13 August 2019)
• EU Mandatory Disclosure Rules – An update on local country implementation status and trends(8 August 2019)
• Lithuanian President signs primary legislation on implementation of Mandatory Disclosure Rules(5 August 2019)
• The Netherlands publishes draft proposal on Mandatory Disclosure Rules(26 July 2019)
• UK publishes draft legislation and consultation paper on EU Mandatory Disclosure Regime(24 July 2019)
• Slovenia passes Act amending the Tax Procedure Act to implement Mandatory Disclosure Rules(17 July 2019)
• Netherlands issues draft mandatory disclosure regime legislation(17 July 2019)
• Denmark publishes draft proposal on Mandatory Disclosure Rules(10 July 2019)
• Slovakia passes draft legislation to implement EU Mandatory Disclosure Rules(8 July 2019)
• Spain publishes draft proposal on Mandatory Disclosure Rules(28 June 2019)
• Spain issues draft mandatory disclosure regime legislation(21 June 2019)
• Portugal publishes draft proposal on MDR(29 May 2019)
• Czech Republic publishes draft proposal on MDR(17 Apr 2019)
• Poland publishes official tax guidelines on the Mandatory Disclosure Rules(2 Apr 2019)
• Cyprus publishes draft Mandatory Disclosure Rules(28 Mar 2019)
• Germany publishes draft Mandatory Disclosure Rules(20 Mar 2019)
• The Netherlands publishes draft Mandatory Disclosure Rules(31 Jan 2019)
• Swedish Tax Committee proposes Mandatory Disclosure Regime(21 Jan 2019)
• Poland passes 2019 tax reform including MDR(1 Nov 2018)
• EU: Outcomes of the September meeting of EU Member States and the EC regarding Mandatory Disclosure(31 Oct 2018)
• Poland to implement MDR Rules as at 1 January 2019(9 Oct 2018)
• European Commission paper offers guidance on hallmarks(10 July 2018)
• EU publishes Directive on new mandatory transparency rules for intermediaries and taxpayers(05 June 2018)
• EU Council adopts Directive on new mandatory transparency rules for intermediaries and taxpayers(29 May 2018)
• Council of the EU reaches an agreement on new mandatory transparency rules for intermediaries and taxpayers(14 Mar 2018)
• European Commission proposes new transparency rules for intermediaries(23 June 2017)
• OECD releases final report on mandatory disclosure rules under Action 12(15 Oct 2015)