Estonia published 2 regulations for the implementation of the DAC6 requirements on reportable cross-border tax planning arrangements in the official gazette.
These regulations are based on the amendments to the Tax Information Exchange Act, accepted by law on December 18, 2019. This law entered into force on January 1, 2020 and the requirements will apply from July 1, 2020.
First regulation
The first regulation concerns the criteria for cross-border schemes. It establishes criteria for cross-border schemes, which refer to the potential risk of taxation, exchange of information on financial accounts or identification of beneficial owner referred to in § 20 8 of the Tax Information Exchange Act.
The regulation describes:
- Criterion or basic benefit
- Schemes to be assessed in the light of the criterion of the principal good
- Schemes related to cross-border transactions that do not require the fulfillment or the principal benefit criterion
- Transfer pricing schemes that do not require the primary benefit criterion to be with
- Schemes affecting the exchange of information on financial accounts
- Criteria for the scheme affecting the identification of the beneficial owner
This regulation shall apply from January 1, 2020.
Second regulation
The second regulation concerns amendments of regulation no. 16 of the Minister of Finance of May 19, 2015 “Form of Declaration according to the Tax Information Exchange Act and Establishment of the Procedure for Submission and Completion thereof”. The required information is listed in Annex 16 and attached to the regulation. This regulation shall apply from January 1, 2020.
Criteria for cross-border schemes , Amendment of Regulation No. 16 , Tax Information Exchange Act Amendment Act