2023-05-16 12:20:33
The Ministers of Economy and Finance of the European Union (UE) have reached an agreement to oblige all crypto asset service providers to report transactions carried out by community residents in order to fight against tax evasion and improve collection in operations now difficult to trace.
“We have agreed on the compromise text (…). The agreement increase fiscal transparency in the EU and we hope that it can also be an example for other actors in terms of the automatic exchange of relevant information”, the Swedish Finance Minister announced after the ministerial debate, Elisabeth Svantesson.
The proposal, presented by the European Commission in December 2022, seeks tackling anonymity in transactions with crypto assetswhich allows users who are obtaining great benefits with them to escape the radar of the tax authorities.
To this end, it amends the administrative cooperation directive (DAC8) to extend to this sector the rules that require exchange information for tax purposesso that the Treasury has the necessary information so that these gains are taxed as would be the case with any other financial asset.
Specifically, service providers with cryptoactives will be obliged to report the transactions of clients residing in the European Union, whether domestic or cross-border operationsand the tax authorities will be obliged to exchange this information automatically.
wide range
The rules will cover a wide range of crypto assets, including those that have been issued in a decentralized manner, such as stablecoins, e-money tokens and non-fungible tokens (NFTs).
In this way they complement the new regulation on the Crypto-assets Market (MiCA), which also received the final green light from EU partners today and which will be the first specific legislation to bring order to the European cryptocurrency market.
“These measures will ensure that all tax authorities have all the information they need to ensure a level playing field in relation to crypto assets and that profits from trading or investing in crypto are taxed,” said the European Commissioner for the Economy, Paul Gentiloni, during the discussion.
On the other hand, the new DAC8 standard will force exchange information automatically on cross-border agreements that some countries grant to very wealthy individuals, with assets of at least one and a half million euros in investments or assets under management, not including the main residence.
They will also have to exchange data on uncustodial dividends or similar income, that are now not covered by the directive, to “reduce the risks of tax avoidance, evasion and fraud”, as explained by the Council in a statement.
The rule also modifies the obligation to report the Tax Identification Number to “make it easier for the authorities to identify taxpayers and correctly attribute taxes.” The ministers agreed that it begins to be applied from 2028, although the European Commission and Belgium requested that it be mandatory from 2024.
Related news
“In our opinion, the tax identification number should be included in the context of the mandatory information exchange in country reports. It is highly recommended to use the possibility of using the identification number from January 1, 2024,” Gentiloni said. .
The rule will enter into force once the European Parliament gives its opinion on it, although it is not binding.
#agrees #rules #prevent #tax #evasion #crypto #assets