The Council of the European Union adopted Directive 10215/23 (DAC8), introducing amendments to Directive 2011/16/EU on administrative cooperation in the area of taxation. The primary focus of these changes revolves around the reporting and automatic exchange of information concerning revenues from crypto-asset transactions and advance tax rulings for high-net-worth individuals.

Key amendments include:

• Extension of Automatic Information Exchange Requirements:
  • Inclusion of crypto-asset service providers to align with the Crypto-Asset Reporting Framework (CARF) and amendments to the Common Reporting Standard (CRS).
• Application to Various Crypto-Assets:
  • Broadening requirements to cover diverse crypto-assets, encompassing those issued in a decentralised manner, stablecoins, e-money tokens, and specific Non-Fungible Tokens (NFTs).
• Expansion of Information Exchange Rules:
  • Inclusion of non-custodial dividends and similar revenues in information exchange.
  • Extension of rules to encompass rulings involving high-net-worth individuals.
• Requirement for Tax Identification Numbers (TINs):
  • Mandating the inclusion of Tax Identification Numbers (TINs) for individuals and entities in information exchanges to enhance taxpayer identification.
• Implementation of Penalties:
  • Mandatory imposition of penalties by EU Member States for non-compliance with reporting requirements.

DAC8 became effective on 13 November 2023, 20 days after its publication in the Official Journal of the EU. EU Member States are required to transpose the main rules into national law by 31 December 2025. The new provisions will apply as of 1 January 2026.

Should you require further information in relation to these new changes, please contact Charlene Tabone Spalding on charlene.t.spalding@pkfmalta.com.

Please note that this article is being published solely for informational purposes. It is imperative to note that this content neither constitutes nor should be inferred as legal advice or guidance. PKF Malta Limited explicitly disclaims any responsibility or liability for potential damages that may arise from the utilisation of this information as a substitute for professional legal advice or guidance.