By joining the tax reporting rule for digital currencies set by the European Union (EU), the Netherlands has announced its intention to apply tax monitoring rules to crypto. The Dutch government, an EU member, is required to accept and implement the new reporting obligation, a structure intended to help EU member states monitor digital currency.
New reporting policy
The The Dutch Ministry of Finance has announced this that the government wants to adopt a new policy that will ensure that activities related to cryptocurrencies will be reported and subject to tax.
According to the tax authorities, under the proposed legislation, from January 2026, the government will require crypto service providers to collect and share the data of their users with the Dutch tax authorities.
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However, the Tax Authorities noted that owners of digital currencies already have to file tax returns on their balances and that the measure will not affect them.
Citing that the proposed step will improve cooperation between EU members by exchanging crypto data and transactions, State Secretary for Taxes and Tax Authorities Folkert Idsinga clarified that the bill is seen as an important initiative of the Dutch government in the field by crypto taxes.
“This will combat tax avoidance and evasion, and European governments will no longer miss out on tax revenues,” Idsinga said.
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Under the new rule, digital asset service providers must submit the user data of individuals who are residents of EU member states. They must submit the data to the Dutch tax authorities, which can be shared by the tax authorities with other tax authorities in the regional bloc.
Public feedback
The Dutch government said it wants to know the public’s opinion on the proposed tax supervision law. There will be a consultation period running until November 21, during which people are encouraged to voice their concerns and reactions to the new policy.
The feedback collected during the consultation will be used to draft the final version of the legislation. The Tax Authorities aim to submit the proposed measure to the House of Representatives next year.
EU crypto tax reporting
In October 2023, the EU introduced DAC8, a crypto tax rule which requires all crypto service providers across the EU to provide their respective tax authorities with their users’ data.
The Dutch government said DAC8 enables data exchange between tax authorities within the EU, reducing the administrative burden on crypto service providers as they only need to communicate with the appropriate authorities in the country where they are registered.
“Without this DAC8 guideline, providers could be asked for information by any Member State,” the Tax Authorities said.
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