On 24 June 2026, the European Commission published a staff working document presenting the executive summary of an impact assessment for a proposal to recast Directive 2011/16/EU on administrative cooperation in the field of taxation (DAC). The initiative aims to simplify and clarify the DAC provisions, which have become complex due to multiple amendments, creating legal uncertainty and administrative burdens for businesses and tax authorities. The proposed changes are intended to reduce compliance costs and improve the efficiency of information exchanges to better combat tax fraud, evasion, and avoidance.
The impact assessment accompanies a proposal for a Council directive that would recast the existing DAC framework. The document, prepared by the Commission's Directorate-General for Taxation and Customs Union (TAXUD), outlines targeted legislative measures to refine DAC reporting obligations, adjust thresholds under DAC7 (which covers reporting obligations for digital platform operators), streamline notification procedures for DAC4 (exchange of tax rulings) and DAC9 (exchange of country-by-country reports), and improve data quality, including the use of taxpayer identification numbers. Stakeholders broadly support these adjustments, which are expected to yield significant simplification benefits and lower compliance costs while enhancing the effectiveness and proportionality of the DAC framework.
The recast is a technical but important update to a key instrument in EU tax governance. The current directive has been amended multiple times since its adoption in 2011, leading to a fragmented legal text. By consolidating and simplifying the rules, the Commission aims to make the framework more user-friendly for national tax authorities and businesses alike. The impact assessment notes that the proposed changes are expected to reduce administrative burdens for businesses, particularly those operating across borders, and improve the speed and accuracy of information exchanges between member states.
The proposal now moves to the Council of the European Union for adoption, where it will require unanimous approval. The European Parliament will be consulted. The recast is part of the Commission's broader efforts to modernise EU tax rules and enhance cooperation among member states to tackle tax avoidance and evasion. The initiative is expected to have a moderate positive impact on businesses by lowering compliance costs, while tax authorities will benefit from clearer rules and better data quality. No significant negative impacts are anticipated, as the changes are largely technical and aimed at simplification. The importance score is 55.