European Union: Adopted Council Directive Amending Directive 2011/16/EU on Administrative Cooperation in the Field of Taxation (DAC8)

On 17 October 2023, the Council of the European Union adopted the Directive Amending Directive 2011/16/EU on Administrative Cooperation in the Field of Taxation (DAC8). The primary focus of the Directive lies in enhancing the reporting and automatic exchange of information regarding income generated from transactions involving crypto-assets, as well as providing details on advance tax rulings specifically related to high-net-worth individuals. Furthermore, additional types of assets and income, including crypto-assets, will fall within the scope of the Directive, and a compulsory automatic exchange of information will be established between tax authorities, with the responsibility of providing this information lying with the crypto-asset service providers. The Directive applies the definitions from the regulation on markets in cryptoassets (MiCA). Specifically, decentralised crypto assets, stablecoins, and select NFTs fall within the scope. The Directive will enter into force on the twentieth day following its publication in the Official Journal.