The Council of the EU has agreed on an approach to amendments to the Directive on Administrative Co-operation (DAC – Council Directive 2011/16/EU) to bring transactions in cryptoassets within the scope of its reporting and automatic exchange of information requirements.
The proposed amendments, to be set out in a new Directive (DAC8) which will need to be passed unanimously by member states, focus on the following three areas:
extending the automatic exchange of information under the DAC to cryptoasset service providers, who will be required to report on transactions involving cryptoassets or other e-money;
extending the rules on the exchange of tax-relevant information to include the exchange of advance cross-border rulings involving high net worth individuals, together with provisions on automatic exchange of information on non-custodial dividends (custodial dividends are those paid or credited to a custodial account, which is an account which holds assets for the benefit of another person) and similar revenues; and
improving the reporting and communication of tax identification numbers to help tax authorities identify taxpayers and correctly assess taxes, and amending the penalties for failure to comply with DAC reporting requirements.
The Council of the EU has agreed on an approach to amendments to the Directive on Administrative Co-operation (DAC – Council Directive 2011/16/EU) to bring transactions in cryptoassets within the scope of its reporting and automatic exchange of information requirements.
The proposed amendments, to be set out in a new Directive (DAC8) which will need to be passed unanimously by member states, focus on the following three areas:
extending the automatic exchange of information under the DAC to cryptoasset service providers, who will be required to report on transactions involving cryptoassets or other e-money;
extending the rules on the exchange of tax-relevant information to include the exchange of advance cross-border rulings involving high net worth individuals, together with provisions on automatic exchange of information on non-custodial dividends (custodial dividends are those paid or credited to a custodial account, which is an account which holds assets for the benefit of another person) and similar revenues; and
improving the reporting and communication of tax identification numbers to help tax authorities identify taxpayers and correctly assess taxes, and amending the penalties for failure to comply with DAC reporting requirements.
