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Source: TAXDAO
In order to adapt to the changing financial environment, in December 2022, the European Commission proposed to establish a report framework to request an encrypted asset service provider to report the transactions of EU customers.In May 2023, the EU Treasury Secretary reached a political agreement. In October of the same year, EU member states officially passed the 2011/16/EU instructions on the administrative cooperation in the taxation field, that is, DAC8, which introduced comprehensive tax transparency rules for encrypted assets.And expanded cooperation between the tax authorities of member states.
According to regulations, EU member states must transform the main rules of DAC8 into national laws before December 31, 2025, and the new regulations will be applied from January 1, 2026.However, there are two exceptions: the provisions related to identity recognition services should be transformed into national laws before January 1, 2024, and will be implemented from January 1, 2025.Regulations related to TIN verification should be transformed into national laws before December 31, 2027, and are applicable from January 1, 2028.
The main content of DAC8
DAC8 requires cryptocurrency to report information held by customers, allowing tax authorities to share personal cryptocurrency holding data, which means that all cryptocrete service providers in the EU, regardless of their size, must report to customers living in the European Union.Transaction.The amendment mainly involves reports and automatic exchange information of certain income of crypto asset transactions, as well as providing pre -tax rulings for high net worth individuals.This instructions strengthen the existing legislative framework by expanding the scope of registration and reporting obligations and improving the overall administrative cooperation between tax authorities. It aims to prevent assets from using cryptocurrencies to hide and improve tax fraud, tax avoidance and tax avoidance, tax avoidance, and taxes on overseas.The ability to evade taxes.
DAC8’s latest progress
A few EU countries have carried out domesticization of the DAC8 Act.According to reports, the Spanish Ministry of Finance is conducting legislative reforms on the General Tax Law to allow the Spanish tax bureau to identify and take over the encrypted assets owned by taxpayers holding overdue debts.Spanish residents holding any encrypted assets on non -Spanish platforms must declare to the tax authority before the end of next month, but the asset liability statement exceeds that of 50,000 euros (about 54,000 US dollars) of the individualForeign assets.On March 25, 2024, the government of the Czech Republic announced the revision of the draft bill of the “International Tax Cooperation and Other Related Acts” to promote the domestic process of DAC8.The bill requires information about the automatic exchange of cryptocurrency asset transactions in cryptocurrency service providers, including digital service providers’ pre -tax rulings on high net worth individuals or DAC8.On March 21, 2024, the Ministry of Finance of Slovakia solicited opinions on the DAC8 Act and launched DAC8 into the domestic law.However, there are currently no countries to land on the relevant bill.Before the bill is landed, the encrypted institution has time to carry out internal reforms to meet the requirements of DAC8, and investors must also make the impact of preparing to meet DAC8.
How does DAC8 are related to encrypted assets?
DAC8 expands the scope of automatic information exchange to crypto assets and electronic currencies, and is suitable for financial institutions in electronic currencies and central bank digital currencies (CBDC).Crypto asset service providers should collect information each year and report to the tax authorities of residential, authorized or registered member states, including the relevant crypto asset provider itself, the user’s user, and the transaction information that can be reported.In addition, tax authorities will share information about local reports with the tax authorities of user residence through the EU joint communication network.
By revising the definition of “deposit institutions” and “deposit accounts”, the concept of electronic currency is included in the CRS framework, and entities that hold electronic currencies, products or central bank digital currencies are incorporated into the scope of financial institutions under CRS.
DAC8 expands the information that needs to be reported.The report under DAC2/CRS requires that it has expanded to a report that includes the role of the reporter as the role of the controller or equity holder. Financial institutions will need to collect or evaluate relevant information about customers.In addition, the newly classified financial institutions will be required to collect and review their customers’ self -proof from the date of change: ① Whether the account is a joint account, including the number of people who hold the joint accountThe account is still a new account.
DAC8 also introduced a cross -border tax exchange related information exchange related to high net worth individuals (that is, individuals covering more than 1.5 million euros covering a transaction covering a transaction covering) after January 1, 2026.The competent authorities of member states shall automatically exchange information about the following categories of cross -border pre -ruled by the following category after January 1, 2026:
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The amount of transactions or a series of transactions exceeds 1.5 million euros, and the amount mentioned in the ruling involves and involved a pre -cross -border ruling involving and involving one or more natural persons.
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Determine the pre -cross -border ruling of the tax residence of natural people in a member country.
DAC8 expands the scope of the current tax -related information exchange rules, including regulations on automatic exchange non -custody dividends and similar income information, and supplement the current regulations of DAC.At the same time, it also expanded the scope of DAC in the scope of value -added tax, other indirect taxes, tariffs, anti -money laundering measures and help to combat the regulations of funding terrorism.In addition, DAC8 also proposes the possibility of using the exchange information without the permission of the member state. The member states should send information based on the purpose covered by Article 215 of the European Union Operation Treaty, and for this purpose and for this purpose and and for this purpose and and for this purpose and and for this purpose and and for this purpose and and for this purpose and and for this purpose and, the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose and the purpose.The members of the member states are responsible for restrictive measures to prevent the sharing of the authorities to prevent violations of sanctions.
DAC8 strengthened Tin’s report and communication.The committee will provide tools for member states to allow automatic electronic verification to the taxpayer identification number provided by the report entity or taxpayer in order to automatically exchange information.At the same time, member states will strive to ensure that the allowing entities can obtain electronic confirmation of taxpayer recognition coding effectiveness within the range of DAC1, DAC2, DAC3, DAC4, DAC6, DAC7, and DAC8.
DAC8 is a consensus reached by the EU countries to build a more comprehensive and transparent tax system, marking a major step in the EU’s cryptocurrency in the rapid development of supervision.Although it is still necessary to leave the time, with the gradual promotion of DAC8 law from various countries, DAC8 will also be officially applied in cryptocurrency supervision practice.
