European Union: Entry into force with a grace period of Council Directive Amending Directive 2011/16/EU on Administrative Cooperation in the Field of Taxation (DAC8)

On 13 November 2023, the Council Directive Amending Directive 2011/16/EU on Administrative Cooperation in the Field of Taxation (DAC8) entered into force with a grace period. Under the Directive, the Member States are required to adopt laws and regulations implementing the requirements outlined by 31 December 2025, and the provisions will apply from 1 January 2026. The Directive outlines measures aiming at 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.