On 8 December 2022, the European Commission released a proposal for a council Directive amending Directive 2011/16/EU on administrative cooperation in the field of taxation (hereafter “DAC 8”). The proposal extends the scope of the automatic exchange of information to crypto-assets.
If this proposal is adopted, starting from 1 January 2026, service providers and operators providing crypto-assets services would be required to carry out due diligence procedures and report information on exchanges and transfers of crypto-assets in scope carried out by individuals or entities crypto-assets users, resident in a Member State.
These rules, that should be transposed by each Member State into domestic laws by the end of 2025, are based on the OECD Crypto-Asset Reporting Framework (CARF) and refer to the forthcoming regulation of the Market in Crypto-Assets (MiCA).
Based on this proposal, the information is to be reported by Reporting service providers and operators to the relevant Member State’s competent authorities no later than 31 January of the year following the relevant calendar year to which the information relates. Reported information shall be then made available to all EU Member States through a dedicated communication network - the Common Communication Network (CCN).
The proposal also extends the scope of (1) the automatic exchange of information on tax rulings to high-net-worth individuals and of (2) the Common Reporting Standard (CRS) to notably cover e-money and central bank digital currencies and integrate additional reportable information (e.g. role of each controlling person, joint account information, etc.). In addition, it introduces minimum financial penalties in the context of the automatic exchange of information.
The ABBL follows closely this proposal in the first instance at level of our technical working group dedicated to tax reporting.
ABBL contact: Laétitia Carroz, Tax adviser