DAC3/BEPS Action 5

Scope and information to be exchanged

Exchange of rulings - Council Directive (EU) 2015/2376 (DAC3)

DAC3 requires EU Member States to exchange information on advance cross-border rulings and Advance Pricing Agreements that are provided to companies and other entities. This is in respect of all taxes, including VAT, other indirect taxes, and customs duties.

In 2023, DAC8 expanded the scope of DAC3 exchangeable opinions to include certain cross-border tax rulings involving natural persons from 1 January 2026. A natural person is an individual.

From 1 January 2026, DAC8 requires advance cross‑border tax rulings issued to individuals to be exchanged with EU tax authorities.

Exchange applies when:

• the ruling concerns only the tax affairs of one or more individuals
• it is issued, amended or renewed on or after 1 January 2026
• the required conditions are met.

These conditions are:

(a) the amount of the transaction, or series of transactions, of the cross-border ruling exceeds €1,500,000 (or equivalent amount in any currency), if the amount is referred to in the ruling

or

(b) the ruling relates to whether an individual is tax resident in the issuing Member State.

For further information, please refer to Tax and Duty Manual Part 35-00-01.

Exchange of rulings – Base Erosion and Profit Shifting (BEPS) Action 5

BEPS Action 5 provides for the exchange of information on certain categories of taxpayer-specific rulings. These rulings apply to pre- and post-transaction rulings. Taxpayer-specific rulings are defined as rulings that apply to a specific taxpayer and on which that taxpayer is entitled to rely.

There are several categories of rulings that are subject to compulsory spontaneous exchange of information under the Organisation for Economic Co-operation and Development (OECD) framework. For further information, please refer to Tax and Duty Manual Part 35-00-01.

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