Cryptocurrency transactions under the fiscal magnifying glass. The reporting obligation is to limit the black zone
It is a draft amendment to the Act on the exchange of tax information with other countries and some other acts by the Ministry of Finance.
As indicated in the justification, the proposed provisions are to make the tax authorities have better insight into financial transactions, especially international and cryptocurrencyas well as in the profits of large companies, which is to prevent fraud and avoiding taxes by storing funds in cryptocurrencies. This is to be used to increase the effectiveness of information exchange by unifying reporting rules in individual countries covered by the exchange. The goal is also to limit administrative burdens.
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Pursuant to the draft, the reporting obligation will be primarily of cryptoactic service providers. They must comply with due diligence procedures. They will collect and verify the data about their clients, i.e. cryptoactic users, such as their identity and tax residence, as well as report information about customer transactions.
Monitored transactions and purchases
It is about exchanging cryptoctives for ordinary currencies and vice versa, exchange between different types of cryptoctives, their transfers (transfers), including payments for goods and services. Cryptoactic will be subject to reporting, which may be used for payment purposes or for investment purposes. Information about cryptoctives is to go to the head of Kas.
Cryptoactic operators who do not have to have special permits on the basis of EU regulations (MICA regulation) will also be covered by a reporting obligation. To this end, they will be obliged to register in one of the EU countries. Reporting obligations apply to both EU and outside the EU operators, to the extent that their clients are cryptoactic users who are EU residents.
Administrative and criminal sanctions
Designed regulations provide for administrative and criminal sanctions for failure to comply with reporting obligations and due diligence procedures.
MF also proposed in the project changes aimed at improving the information exchange system and expanding its scope, including Exchange of information on cross -border individual interpretations regarding natural persons when the transaction value exceeds EUR 1.5 million. There are also changes to extend the scope of information exchange about some income categories.
The project also assumes automatic exchange of information in connection with the compensatory tax, which is to ensure that the profits of large groups of enterprises – international and national – will always be taxed at an effective rate of at least 15 percent. The proposed provisions specify the scope and terms of information exchange in this matter; countries with whom the data should be mentioned, as well as the principles of cooperation with other countries regarding compensation tax.
The project prepared by the Ministry of Finance is aimed at implementing EU regulations, including DAC 8 and DAC 9 directives. The project is to be found to the government in the third quarter of 2025.
