By aligning it with the tax reporting rule on cryptocurrencies enacted by the European Union (EU), the Netherlands has revealed its intention to implement tax control rules on cryptocurrencies. The Dutch government, a member of the European Union, is obliged to accept and implement new reporting requirements, a structure intended to help EU member states control Digital currencies.
New reporting policy
the The Dutch Ministry of Finance announced The government is seeking to pass a new policy that ensures cryptocurrency-related activities are reported and taxed.
According to the tax authorities, under the proposed legislation, the government will require cryptocurrency service providers to collect their users’ data and share it with the Dutch tax agency starting in January 2026.
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However, the Dutch tax and tax authorities have indicated that cryptocurrency holders are already required to file a tax return on their balance and that this measure will not affect them.
Noting that the proposed move will improve cooperation between EU members through the exchange of cryptocurrency data and transactions, State Secretary for Taxation and Tax Authorities, Volkert Iidsinga, explained that the draft law is seen as an important initiative taken by the Dutch government regarding… Crypto taxes.
“This will combat tax 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 provide user data to individuals residing in EU member states. They must submit data to the Dutch Tax Administrator, which the tax agency can share with other tax authorities across the regional bloc.
Public reactions
The Dutch government said it wants to know what the public thinks about the proposed tax control law. There will be a consultation period running until 21 November where people are encouraged to voice their concerns and reactions to the new policy.
Feedback collected during the consultation will be used to draft the final version of the legislation. The tax authorities aim to present the proposed measure to the country’s House of Representatives next year.
Cryptocurrency tax reporting in the European Union
In October 2023, the European Union introduced the DAC8, a Taxation rule for cryptocurrencies This requires all crypto service providers across the EU to provide their users’ data to their tax authorities.
The Dutch government said that DAC8 allows data to be exchanged between tax authorities within the EU, reducing the administrative burden on cryptocurrency service providers as they only need to communicate with the relevant authorities in the country in which they are registered.
“Without this DAC8 Directive, service providers could be required to obtain information by any Member State,” the Dutch tax authorities explained.
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