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Mandatory Disclosure Regime (MDR)
Countries are implementing mandatory disclosure rules aimed at increasing transparency to detect what is perceived by tax authorities to be potentially aggressive cross-border tax planning. We can work with you to identify and help manage cross-border reporting obligations by leveraging our global network and up-to-date tools.
What EY can do for you
MDR will lead to extensive reporting obligations for a relatively wide range of transactions being classified as reportable arrangements. No jurisdiction other than Mexico has introduced any de minimis rules. Taxpayers and intermediaries (e.g. advisors, banks etc.) must implement policies, procedures and processes to identify and capture details of transactions that they may need to disclose. Penalties can be significant.
EY teams across the world can help taxpayers and intermediaries (e.g., advisors, banks etc.) identify and manage their obligations under the MDR.
- Governance
- Impact Assessment
- Reporting
- Technology
Do you have a process to manage your MDR obligations?
- EY teams can assist 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.
Why is this relevant?
- There may be situations where you may have a reporting obligation. Penalties for incomplete or late filing can be significant.
Have you appointed a person as the process owner for MDR compliance and are the responsibilities for MDR reporting defined within your organization? Why is this relevant?
- The responsibility for MDR compliance often starts with the Tax function. However, the responsibility for adequate processes, up-to-date MDR knowledge and timely filing may be with different parts of your organization.
Have you conducted an MDR impact assessment? If so, what was the outcome for the countries where you have a footprint?
- It is important to identify and assess the potentially reportable transactions based on the regulations applicable. Even though EU MDR rules are based on DAC 6, there are differences in how this has been transposed and implemented across the EU member states. Argentina and Mexico each have their own set of reportable hallmarks under their own MDR.
Why is this relevant?
- MDR may impact your internal and external processes a lot, depending on your EU footprint, legal structure and your business activities. Documenting where and to what extent MDR may impact your organization is important.
Other stakeholders may request this information (e.g., internal audit, external auditors, tax authorities, etc).
Do you have a process to understand what has been reported by your intermediaries (e.g. advisors, banks etc.)?
- Generally, the reporting obligation lies with intermediaries. Intermediaries may only have limited information on the broader background and relevant taxpayers have to deal with any follow up questions raised by the tax authorities.
Why is this relevant?
- In certain EU jurisdictions, you may have to annually report which MDR disclosures have been made.
Do you have a process to meet the 30-day deadline in the EU, Mexico and the UK or 10- day deadline in Argentina?
- A delayed reporting can trigger penalties that can amount for MDR reporting failures of up to e.g. Euro 5m in the EU.
Why is this relevant?
- The rolling 30-day deadline in practice is very short. This may make relying on your existing compliance processes risky, especially where they do not operate frequently or seamlessly enough to ensure compliance with the tight deadlines.
EY teams can assist you with the reporting of your arrangements in the format as requested by the local tax authorities.
- EY teams have developed MDR Web, an assessment tool.
- It is designed to evaluate, log and report cross-border arrangements.
- You also have access to technical guidance on each country’s MDR rules.
Why choose MDR Web
- Includes guidance for both EU and non-EU countries as and when legislation and guidance is published by the authorities
- Deployed in either your IT infrastructure, or on an EY hosted cloud, depending on your preference.
- To learn more, please check our MDR Web’s functionalities and watch our video below.
MDR Web — the EY cross-border assessment tool, described in the video above — is designed to evaluate, log and report cross-border arrangements.
MDR Web functionality
- Data Input
- Analysis
- Documentation and Reporting
- Access for named users (client and/or EY) to log arrangements
- Integrated with single sign-on
- Data input guidance (technical explanations of MDR terms) provided
- Disclosure workflow management process
- Essential documents can be attached and uploaded
- Record arrangements based on legal entities to enable reporting directly from the tool
- Guided process to evaluate whether an arrangement is reportable or not.
- Smart/dynamic questionnaire helps minimize questions based on previous answers.
- Detailed guidance (technical explanations of MDR legislation per country)
- Highlights differences in countries’ interpretations to aid review pre-submission and help you understand differences in evaluation outcomes.
- Functions as an online repository of reportable arrangements during the transition and deferral periods and beyond.
- Dashboard for easy monitoring.
- Creates an audit trail from logging to reporting.
- Data is held in structured (SQL) format to support report generation based on a legal entity or country basis.
- Supports xml reporting, building onto our extensive Global Tax Reporting Service.
- Functionality to capture proposed disclosures by your intermediaries.
To learn more, explore our guidance for taxpayers and intermediaries
- MDR: support for taxpayers (pdf, 2 MB)
- MDR: support for intermediaries (pdf, 2MB)
DAC 6 updates
This newsletter and table provides insight and technical information leading up to DAC 6 implementation on 1 July 2020.
DAC6 deferral and reporting details (pdf) (last updated 22 April)
DAC6 local country status and reporting trends (pdf) (May 2020)
Designing and implementing your long-term compliance program for the EU mandatory disclosure rules (MDR) (pdf) (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
- Italian Tax Authorities issue resolution on Mandatory Disclosure Rules (1 Mar 2022)
- Finance Canada releases draft legislation for 2021 budget measures (10 Feb 2022)
- UK issues consultation on regulations to implement OECD mandatory disclosure rules (15 Dec 2021)
- Poland publishes statistics on MDR information submitted between January 2019 and September 2021 (10 Dec 2021)
- Cyprus further extends non-application of administrative fines for DAC6 submissions until 31 January 2022 and issues circular on DAC6 penalties (24 Nov 2021)
- Cyprus issues Ministerial Decree on DAC6 Guidelines (4 Nov 2021)
- Cypriot Tax Department announces update of XML Schema for DAC6/MDR submissions (30 July 2021)
- Romania amends MDR legislation (7 June 2021)
- Cyprus announces extension of the non-application of administrative fines for DAC6 submissions until 30 September 2021 and an update to the Cypriot XML schema (4 June 2021)
- Spanish Ministry of Taxation approves Mandatory Disclosure Regime reporting forms and deadlines (14 April 2021)
- Spanish Government publishes MDR Regulations (8 April 2021)
- Spanish Council of Ministers approves MDR regulations (7 April 2021)
- Canada: Quebec releases list of transactions for mandatory disclosure (6 April 2021)
- Cyprus law to implement Mandatory Disclosure Rules enters into force (2 April 2021)
- German Ministry of Finance publishes final MDR guidance (1 April 2021)
- Cyprus approves legislation to implement Mandatory Disclosure Rules (19 March 2021)
- Portugal publishes MDR guidance and reporting form (26 February 2021)
- Cyprus announces non-application of administrative fines for DAC6 submissions up until 30 June 2021 (26 February 2021)
- Luxembourg Tax Authorities update MDR guidance (25 February 2021)
- Hungarian Ministry of Finance issues guidance on Mandatory Disclosure Rules (15 February 2021)
- Romanian Tax Authority publishes DAC6 guidance regarding national legislation on Mandatory Disclosure Rules (10 February 2021)
- Cypriot Tax Department announces extension of deadlines for DAC6 submissions (4 February 2021)
- Mexico establishes threshold for reporting customized transactions under mandatory disclosure regime (3 February 2021)
- Italy announces non-application of penalties for submission of mandatory disclosure reports made by 28 February 2021 (2 February 2021)
- Mexico’s mandatory disclosure tax return site is now available (29 January 2021)
- Greece extends deadline for submission of mandatory disclosure reports (29 January 2021)
- Gibraltar announces its approach to Gibraltar Mandatory Disclosure Rules post UK-EU Brexit Agreement (26 January 2021)
- Spanish Parliament approves final legislation to implement MDR (8 January 2021)
- Argentina’s tax authorities launch the “Régimen IPF” service to ensure compliance with mandatory disclosure regime (7 January 2021)
- UK Government announces approach to UK MDR post UK-EU Brexit Agreement (5 January 2021)
- Czech Tax Authority issues guidance on selected DAC6 questions (22 December 2020)
- French Tax Authorities publish specifications for reporting of cross-border arrangements under DAC6 and MDR (18 December 2020)
- Italy publishes ministerial guidance on Mandatory Disclosure Rules (4 December 2020)
- France publishes final guidance on Mandatory Disclosure Rules (2 December 2020)
- Gibraltar’s Mandatory Disclosure Regime (23 November 2020)
- Mexico’s initial reporting due date for MDR obligations is fast approaching (2 November 2020)
- Argentina implements mandatory disclosure rules (21 October 2020)
- Czech Republic publishes final bill amending Act on International Cooperation in Tax Administration to implement Mandatory Disclosure Rules (22 September 2020)
- Portugal postpones MDR reporting deadlines for six months (13 August 2020)
- Slovakia postpones MDR reporting deadlines for six months (13 August 2020)
- Belgium’s Tax Authority publishes MDR FAQs (12 August 2020)
- Greece publishes Mandatory Disclosure Rules legislation: A detailed overview (6 August 2020)
- Lithuania postpones MDR reporting deadlines for six months (5 August 2020)
- Cyprus postpones MDR reporting deadlines for six months (5 August 2020)
- Italy approves legislation to implement Mandatory Disclosure Rules (4 August 2020)
- Luxembourg enacts deferral of MDR reporting deadlines for six months (30 July 2020)
- Portugal publishes final legislation to implement Mandatory Disclosure Rules (24 July 2020)
- Dutch Government issues Decree with tax authorities’ guidance on reportable cross-border arrangements (23 July 2020)
- UK Tax Authority publishes Mandatory Disclosure Regime Guidance (23 July 2020)
- France extends Mandatory Disclosure Rules reporting deadlines for six months (21 July 2020)
- Hungary extends MDR reporting deadlines for six months (20 July 2020)
- Greece publishes draft proposal to implement Mandatory Disclosure Rules (16 July 2020)
- Spain proposes amendments to MDR Bill to introduce extension of MDR filing deadlines (10 July 2020)
- Poland defers MDR deadlines for cross-border and other tax arrangements (9 July 2020)
- Sweden extends MDR reporting deadlines for six months (8 July 2020)
- Luxembourg publishes draft legislation extending MDR reporting deadlines for six months (8 July 2020)
- Germany announces no postponement of MDR reporting deadlines (8 July 2020)
- Dutch Tax Authority issues guidance on reportable cross-border arrangements (30 June 2020)
- Finland publishes official tax guidelines on Mandatory Disclosure Rules (29 June 2020)
- Council of the EU adopts amendments for deferral of MDR filing deadlines (24 June 2020)
- EU Council ambassadors reach agreement on amended proposal for deferral of MDR filing deadlines (5 June 2020)
- Luxembourg Tax Authorities issue MDR guidance (2 June 2020)
- Spain sends MDR bill to Parliament for approval (29 May 2020)
- France publishes additional official tax guidelines on Mandatory Disclosure Rules (13 May 2020)
- European Commission proposes deferral for certain filing deadlines under the Mandatory Disclosure Rules (8 May 2020)
- UK HMRC issues draft guidance on Mandatory Disclosure Regime regulations (7 May 2020)
- Latvia passes regulations to implement Mandatory Disclosure Rules: A detailed review (5 May 2020)
- Latvia passes regulations to implement Mandatory Disclosure Rules (24 April 2020)
- Luxembourg passes Law to implement Mandatory Disclosure Rules (24 March 2020)
- France publishes official tax guidelines on Mandatory Disclosure Rules (17 March 2020)
- German Ministry of Finance publishes draft MDR guidance (17 March 2020)
- Bulgaria enacts final legislation to implement Mandatory Disclosure Rules (4 March 2020)
- 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)