Expansion of Information Exchange Rules Regarding Crypto Assets: DAC8 Amendment

The European Council has adopted a Directive amending the EU rules on administrative cooperation in taxation. These amendments primarily focus on reporting and automatic exchange of information regarding income from transactions involving crypto assets and advance tax rulings for affluent individuals.

The Directive’s aim is to strengthen the existing legislative framework by broadening the scope of obligations concerning registration, reporting, and overall administrative cooperation among tax administrations.

Additional asset and income categories, such as crypto assets, will now be included in the exchange. Tax authorities will engage in mandatory automatic exchange of information obtained from reports provided by service providers in the crypto asset sphere. Until now, the decentralized nature of crypto assets has made it challenging for tax administrations of member states to ensure compliance with tax laws.

This directive encompasses a wide spectrum of crypto assets, relying on definitions outlined in the Markets in Crypto Assets Regulation (MiCA). The exchange sphere also encompasses crypto assets issued in a decentralized manner, as well as stablecoins, including electronic money tokens and certain non-fungible tokens (NFTs).