By Michael Scott
The Netherlands proposes new crypto tax monitoring laws aligned with EU standards. The new requirements obligate crypto service providers to mandatory collection and sharing of the user data with the taxman by 2026.
- Dutch government eyes new crypto tax monitoring laws compliant with the European Union (EU) standards
- The bill mandates crypto service providers to collect and disclose the user details with the tax authorities by 2026
- EU’s DAC8 directive echoes OECD’s CARF framework in the war against tax evasion
- Public participation ends November 21, with a bill scheduled for submission to Parliament Q2 next year.
The Netherlands joins Italy and Denmark in drafting and enforcing new crypto tax laws. Specifically, the Dutch government seeks new monitoring laws on cryptocurrency tax compelling service providers in crypto assets to collect and convey user data to digital asset service providers to collect and share user data with The Belastingdienst (tax authority).
The Dutch government confirmed the proposal on Thursday, October 24, as an initiative to ensure Dutch regulations comply with the EU standards. Additionally, the proposal eyes enhancing transparency in digital asset ownership.
Transparency Pursuit in Crypto Tax
The proposed legislation directs the service providers and crypto exchanges to gather detailed user data for submission to the Belastingdienst. The monitoring laws will facilitate the sharing of such information with other tax authorities among the EU member states.
The proposals by the Dutch government emerge from the EU’s DAC8 directive that member states adopted in 2023. The directive seeks unified crypto tax reporting across the EU bloc.
The DAC8 framework eases the process for the crypto service providers. As such, it mandates the provider to report data to the authority within the EU country of registration. The process saves them from dealing with multiple jurisdictions.
The Ministry of Finance informed the digital asset owners in the country that the tax obligations are unchanged. As such, one should declare the crypto holdings in the tax returns similarly to other investments. Nonetheless, the proposed system will offer tax authorities better tools to ascertain the declarations.
The monitoring rules will extend beyond the EU via the Netherlands’ participation in the Crypto-Asset Reporting Framework (CARF). The CARF is an initiative crafted by the Organisation for Economic Cooperation and Development (OECD) and adopted in November last year. The CARF allows the Dutch government to share data with non-EU nations – the US, UK, Singapore, Canada, and Australia.
The Tax Affairs and Administration Secretary, Folkert Idsinga, reiterated the essence of the changes to counter tax avoidance. The new measures will bolster the transparency of crypto transactions to the authorities, thereby enabling governments to collect tax revenues.
The monitoring legislation outlines a definite timeline for implementation with the rules set for enforcement on January 1, 2026. The period to take effect allows the service providers to adapt their procedures to satisfy the new requirements.
The government announced the public consultation period, urging the general public and crypto service providers to provide feedback. The input, whose collection ends on November 21, will help shape the final bill version prior to its presentation to the House of Representatives.
The Ministry is set to submit the bill in Q2 2025 to grant a sufficient period for legislative review and adjustments undertaken before the 2026 enforcement date.
Dutch Eyes Beyond MiCA Compliance
The Netherlands’ move mirrors actions undertaken by other EU member states. Recently, Denmark proposed legislation to extend the tax to unrealized gains on crypto to comply with the CARF and DAC8 standards.
The changes emerge as a constituent of the broader EU push for harmonized crypto regulation. Specifically, the bloc’s Markets in Crypto Assets (MiCA) legislation will become effective on December 30 this year. MiCA establishes a comprehensive framework for crypto across the member states.
The latest proposal retains the existing tax treatment of digital assets besides the additional reporting requirements for the service providers. In particular, it obligates the providers to verify the user identities alongside the collection of specific transaction data to aid tax enforcement efforts.
The legislation tasks the crypto service providers with defined responsibilities for data collection and reporting. Primarily, they should ensure accuracy in user activity records and assure appropriate identity verification.
The Netherlands eyes a more structured approach to facilitate crypto tax monitoring. The rules will align the structure with the international standards on tax compliance and financial transparency.