On 25 May 2023, an announcement was published in the Spanish Official State Gazette noting that a bill related to implement the EU directive on DAC7 has been enacted to transpose into domestic law.
The bill aims to improve the existing tax reporting framework to address the challenges of the digitization of the economy and includes additional reporting requirements for reportable financial institutions in relation to reportable account holders.
The bill states that financial institutions and intermediaries will now have to report under general tax law rather than Directive 2011/16/EU. A new reporting requirement has been included, obliging financial institutions and intermediaries to inform persons holding financial accounts or parties to cross-border arrangements that are reportable to another jurisdiction about the personal data that will be reported to the relevant tax authority. This enables individuals to exercise their rights to the protection of personal data. Despite the late entry into force, the updates apply to the 2022 reporting year. Therefore, financial institutions are obliged to comply with the new reporting obligation for reporting in 2023.
