EU countries prepare to tax crypto assets

Member states of the European Union (EU) have agreed to automatically share information in this area to prevent the use of crypto assets for tax evasion.

The European Council announced that member states have agreed on legislative changes that will increase administrative cooperation between national tax authorities on crypto assets.

Consequently, income from crypto asset transactions will be reported, especially by wealthy individuals, and this information will be automatically shared with other member countries.

The general cooperation framework of tax administrations will be expanded, including crypto assets.

With the change in the law, it is expected that:

Registration and notification obligations will be imposed on crypto assets.

Income from crypto assets will be taxable.

Legal loopholes on the use of crypto assets to avoid paying taxes will be closed.

Crypto assets will also be included in the income and taxable asset categories.

Crypto asset service providers should make the automated exchange of information with tax authorities mandatory.

The official approval of the member states is required for the agreement to enter into force. (AA)