Dutch government seeks input on crypto tax laws

The Dutch government is seeking public input on proposed legislation that would require crypto service providers, such as exchanges, to collect and share user data with the national tax authority. 

The initiative aims to align Dutch rules with the broader European Union (EU) standards under the DAC8 framework, which was adopted last year to standardise crypto tax reporting across EU member states. 

According to an October 24 press release from the Netherlands Ministry of Finance, the proposed bill seeks to improve transparency in crypto ownership to help prevent tax avoidance and evasion. 

The Ministry clarified that the new regulations would not impose additional obligations on individual crypto holders, as they are already required to report their crypto holdings in their tax returns. 

Under the proposed rules, data collected by crypto service providers would be shared with the tax authorities of other EU nations, thereby fulfilling the requirements of the DAC8 regulation. 

The Ministry highlighted that service providers would only need to report to tax authorities in the EU member state where they are registered, reducing administrative burdens. 

Folkert Idsinga, the state secretary for tax affairs, noted, “With this bill, we are taking an important step in the taxation of cryptocurrencies,” emphasising that the data-sharing initiative would make crypto “transparent to tax authorities,” helping to prevent tax evasion and ensuring that European governments do not miss out on tax revenues. 

The proposed bill also includes provisions for sharing data with non-EU countries that have signed on to the OECD’s Crypto-Asset Reporting Framework (CARF). 

This agreement includes nations such as the United States, the United Kingdom, Canada, Australia, and Singapore. 

The Dutch government is inviting opinions, advice, and comments on the proposed legislation until November 21, 2024. 

If the bill progresses as planned, it is expected to be submitted to the country’s House of Representatives in the second quarter of 2025.