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Simplifying the MDR Party Structure
The Act of 29 May 2026 amending the Tax Ordinance simplifies the party structure of the MDR (mandatory disclosure rules) regime. From 1 October 2026, reporting obligations rest solely with the promoter and the beneficiary (Article 86a § 2 points 11 and 4 of the Tax Ordinance, as amended). The auxiliary party category, which for years generated interpretive doubts as to the scope of obligations of entities providingsupporting advisory services, is being removed from the system.
Abolishing the Category Is Not an Automatic Exemption
Abolishing this category does not, however, mean that all former auxiliary parties are automatically released from all MDR obligations. Under Article 23 of the amending Act, an entity that was an auxiliaryparty and, as of the Act's entry into force, meets the new definition of a promoter, from that moment performs the promoter's obligations arising from the amended provisions.
The Obligation to Analyse One's Own Status
For banks and other entities that have so far identified themselves as auxiliary parties, this means the need to analyse whether the scope of their activity qualifies them as a promoter within the meaning of Article86a § 2 point 11 of the Tax Ordinance. Incorrect classification after 1 October 2026 may result in failure to perform the reporting obligation, with the resulting fiscal-penal consequences.
Professions Bound by Professional Secrecy
The situation is different for professions bound by professional secrecy. A promoter who is an advocate, attorney-at-law, tax adviser or patent attorney remains exempt from the disclosure itself where it wouldbreach legally protected professional secrecy (Article 86b § 4 of the Tax Ordinance), but this is replaced by the obligation to inform the instructing party (or, failing that, the beneficiary) of the reporting obligationresting on it (Article 86b § 4a of the Tax Ordinance). The risk therefore shifts here from "failure to report" to failure to fulfil this modified set of obligations.
Conclusions
It is worth establishing which side of this line your organisation stands on before an audit does it for you.
We will help you analyse your organisation's MDR status and secure the correct performance of your reporting obligations. Get in touch before an audit does it for you.
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