On 29 March 2021, the German Ministry of Finance has published the final decree regarding the application of the mandatory disclosure rules relating to certain cross-border tax arrangements as per Council Directive (EU) 2018/822 of 25 May 2018. The final MOF decree provides useful guidance for dealing with the reporting obligations under the German DAC. This decree largely follows the draft consulted on in 2020. Germany implemented Council Directive (EU) 2018/822 (commonly referred to as “DAC 6”) into its domestic law on 21 December 2019, and reporting requirements for affected structures that were implemented after 24 June 2018 apply as from 1 July 2020.

The decree provides the details guidance regarding the application of the rules, the interpretation of the hallmarks of a reportable arrangement, and the reporting process, among other things. Failing to comply with the requirements will result in fines of up to EUR 25,000, including where information is incorrect, incomplete, or is not submitted in a timely manner.