DAC6 hallmarks and the main benefit test

A hallmark is a characteristic or feature of a cross-border arrangement that presents an indication of a potential risk of tax avoidance. The list below provides an overview of all the hallmarks that lead to a cross-border arrangement being possibly reportable in the Netherlands. In the definition of “hallmark” under Dutch law, a direct reference is made to Annex IV of the EU Directive on Administrative Cooperation. On that basis, the hallmarks included in the EU Directive (and any future changes of these hallmarks) equally apply in the Netherlands.

Main benefit test

A number of hallmarks is linked to the so-called “main benefit test”. This means that, in order for the cross-border arrangement to become reportable, this test has to be fulfilled. The test will be fulfilled if it can be established that the obtaining of a tax advantage is the main benefit (or one of the main benefits) a person may reasonably expect to derive from a cross-border arrangement. In order to establish whether the main benefit test is fulfilled, all relevant facts and circumstances have to be taken into account. For easy reference, the hallmarks linked to the main benefit test have been marked “MBT” in white.

Overview of the dac6 hallmarks