The Dutch government is seeking public feedback on proposed legislation that would require cryptocurrency service providers, including exchanges, to collect and share user data with the local tax agency, aligning with European Union regulations.
“The aim of the bill is to create more transparency about the ownership of cryptocurrencies, which can prevent tax avoidance and evasion,” stated the Netherlands Ministry of Finance in a press release on October 24.
The ministry clarified that the new rules would not directly impact crypto owners, who are already obligated to report their holdings to the tax authority, known as the Belastingdienst.
Under the proposed legislation, the Dutch tax authority would share the collected data on residents of other EU countries with their respective tax agencies, in accordance with the EU’s DAC8 crypto tax reporting standards established last year. To streamline processes, crypto service providers will only need to report to the tax authority in the EU member state where they are registered.
Currently, Dutch crypto holders are taxed on their assets similar to other investments. However, the Finance Ministry noted that EU tax agencies lack “sufficient insight” into the crypto sector, leading to an uneven financial landscape.
“With this bill, we are taking an important step in the taxation of cryptocurrencies,” said Folkert Idsinga, State Secretary for Tax Affairs. He emphasized that future data-sharing measures would enhance transparency for tax authorities, helping to curb tax avoidance and ensure that European governments retain tax revenue.
The Netherlands is among 47 countries that adopted the Crypto-Asset Reporting Framework (CARF) from the Organisation for Economic Cooperation and Development (OECD) in November. The proposed bill also includes provisions for sharing data with non-EU countries that are part of CARF, such as the United States, United Kingdom, Canada, Australia, and Singapore.
The Dutch government will accept opinions, suggestions, and comments on the proposed legislation until November 21, with plans to present the bill to the House of Representatives in the second quarter of 2025.
October 2024, Cryptoniteuae