On 17 October 2023, the Council of the European Union has announced the adoption of a new directive amending Directive 2011/16/EU on administrative cooperation in the field of taxation for the introduction of new reporting and exchange of information rules concerning crypto-asset transactions and advance tax rulings for high-net-worth individuals (DAC8 Directive). The DAC8 Directive will enter into force 20 days after its publication in the Official Journal of the European Union. EU Member States will need to adopt and publish the laws, regulations, and administrative provisions necessary to comply with the Directive by 31 December 2025, and must apply the provisions from 1 January 2026. However, certain provisions will not be applied until 1 January 2028.
Today, the Council adopted a directive amending EU rules on administrative cooperation in the area of taxation. The amendments mainly concern the reporting and automatic exchange of information on revenues from transactions in crypto-assets and on advance tax rulings for the wealthiest (high-net-worth) individuals.
The aim of the Directive is to strengthen the existing legislative framework by enlarging the scope for registration and reporting obligations and overall administrative cooperation of tax administrations.
Additional categories of assets and income, such as crypto-assets, will now be covered. There will be a mandatory automatic exchange between tax authorities of information which will have to be provided by reporting crypto-asset service providers. So far, the decentralised nature of crypto-assets has made it difficult for member states’ tax administrations to ensure tax compliance. The inherent cross-border nature of crypto-assets requires strong international administrative cooperation to ensure effective tax collection.
This directive covers a broad scope of crypto-assets, building on the definitions that are set out in the regulation on markets in crypto-assets (MiCA). Also those crypto-assets that have been issued in a decentralized manner, as well as stablecoins, including e-money tokens and certain non-fungible tokens (NFTs), are included in the scope.
On 7 December 2021, the Council indicated in its report to the European Council on tax issues that it expects the European Commission to table in 2022 a legislative proposal on further revision of the directive 2011/16/EU on administrative cooperation in the field of taxation (DAC), concerning exchange of information on crypto-assets and tax rulings for wealthy individuals.
On 8 December 2022 the Commission presented a proposal for a Council directive amending directive 2011/16/EU on administrative cooperation in the field of taxation (DAC8). The key objectives of this legislative proposal are the following:
On 16 May 2023, the Council reached an agreement on its position regarding amendments to the directive.
The European Parliament adopted its opinion on the directive 13 September 2023 under the consultation procedure.
The directive was adopted by member states in the Council, by unanimity. It will now be published in the Official Journal and enter into force on the twentieth day following that of its publication.
Source: EU Commission; Orbitax