Mandatory reporting on cross-border agreements/DAC6, new draft law expands the obligations of tax professionals

Tax advisors, lawyers, accountants and other professionals involved in the drafting or implementation of cross-border agreements will face new reporting obligations towards the tax administration. This is foreseen in the draft law DAC6, which was prepared in the framework of the approximation of Albanian legislation with the rules and standards of the European Union. For the first time, Albania aims to establish a special mechanism for reporting cross-border agreements that may have an impact on tax obligations in more than one country or that contain elements of fiscal planning.
Through this system, the declared information will become part of the automatic exchange between Albanian tax authorities and their counterparts in European Union countries. According to the draft, the main burden of reporting will remain with intermediaries, i.e. professionals who provide advice, design or assistance in structuring these schemes. However, in certain situations, when the intermediary is not legally able to report or is exempt from the obligation, the responsibility will pass to the taxpayer himself.
Authorities argue that this initiative aims to increase transparency in the fiscal system and enable faster identification of practices that can be used to avoid or artificially reduce the tax burden. At the same time, the exchange of information with partner countries is expected to strengthen control over transactions and structures with international involvement.
The Tax Administration estimates that the implementation of the DAC6 standard will improve international cooperation in the field of taxation, increasing the level of transparency and further bringing the Albanian legal framework closer to EU requirements. This is considered another step in the process of harmonizing fiscal policies with European practices.
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