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. This is achieved through the addition of new categories of assets and income, such as crypto-assets, that are now in scope for reporting and automatic exchange of information purposes. There will be a mandatory automatic exchange between tax authorities of information which will have to be provided by reporting crypto-asset service providers on transactions (transfer or exchange) of crypto-assets and e-money. 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 decentralised manner, as well as stablecoins, including e-money tokens and certain non-fungible tokens (NFTs), are included in the scope.

It is imperative that crypto-asset service providers start preparing themselves for the transposition of the directive into each of the EU countries where they operate, by ensuring that they have the necessary data collection and retention mechanisms, and systems in place to extract such data and satisfy the periodic reporting obligations.

Should you wish to acquire further information or our assistance with preparing for the reporting obligations, please do not hesitate to contact us.