![Tax transparency rules for crypto-asset transactions (DAC8) [EU Legislation in Progress]](https://i0.wp.com/epthinktank.eu/wp-content/uploads/2023/01/EPRS-Briefing-739310-Tax-transparency-crypto-assets-DAC8-FINAL.png?fit=1000%2C666&ssl=1)
Written by Pieter Baert (1st edition).
The crypto-asset sector, while still relatively new, has already changed the world of payments and investment forever. The fast-changing, mobile nature of the sector and its growing market prominence poses challenges, however, for tax authorities, which are not always able to track the capital gains made from trading crypto-assets.
On 8 December 2022, the European Commission proposed to set up a reporting framework which would require crypto-asset service providers to report transactions made by EU clients. This would help tax authorities to track the trade of crypto-assets and the proceeds gained, thereby reducing the risk of tax fraud and evasion. The reporting framework would be set-up by amending the Directive on Administrative Cooperation (DAC), which is the main framework for other data exchanges between tax authorities. The proposal also puts forward a series of (smaller) changes to improve the existing exchange of tax-related information.
The proposed directive is subject to a special legislative procedure, requiring unanimous support in the Council, following consultation of the European Parliament and the European Economic and Social Committee.
Versions
- January 2023: Tax transparency rules for crypto-asset transactions (DAC8) (1st edition)
| Proposal for amending Directive 2011/16/EU on administrative cooperation in the field of taxation |
| Committee responsible: | Economic and Monetary Affairs (ECON) | COM(2022) 707 8.12.2022 |
| Rapporteur: | Not yet appointed | 2022/0413(CNS) |
| Shadow rapporteurs: | Consultation procedure (CNS) – Parliament adopts a non-binding opinion |
| Next steps expected: Initial discussions in committee |
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