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
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.