EU: New tax transparency rules for service providers facilitating cryptoasset transactions

EU Finance Ministers reached agreement on new tax transparency rules

EU Finance Ministers reached agreement on new tax transparency rules

The European Commission (EC) today announced that EU Finance Ministers reached agreement on new tax transparency rules for all service providers facilitating transactions in cryptoassets for customers resident in the EU.

The rules were proposed by the EC in December 2022. Read TaxNewsFlash

According to today’s EC release, the rules complement existing EU regulations relating to cryptoassets and anti-money laundering, are fully consistent with the OECD initiative on the Crypto-Asset Reporting Framework (CARF), and will improve member states' ability to detect and counter tax fraud, tax evasion, and tax avoidance.

The EC also announced that the updated directive has been extended to include reporting obligations of financial institutions regarding e-money and central bank digital currencies and the automatic exchange of information on advance cross-border rulings used by natural persons.

The new reporting requirements on cryptoassets, e-money, and central bank digital currencies will enter into force on 1 January 2026. Final adoption of the new rules will be possible when the consultative opinion of the European Parliament becomes available.

Read a June 2023 report prepared by the KPMG member firm in Malta


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