DAC8 Directive: New Chapter for European Tax Transparency


With the adoption of the DAC8 Directive on October 17, 2023, the European Union marks a critical step in financial regulation, specifically regarding the exchange of tax information.

This recent directive, aimed at reinforcing transaction reporting obligations for crypto-asset service providers, also impacts other standards, such as DAC2 (Common Reporting Standard – CRS) and DAC6.

Following last year’s OECD initiative to increase tax transparency around crypto assets (see our October 2022 newsletter), DAC8 materializes these new directives.

Impact of DAC8 on Crypto Assets

This new directive, inspired by the OECD’s Crypto-Asset Reporting Framework (CARF), extends the scope of due diligence and reporting obligations, even beyond EU borders.

Unlike the CARF, DAC8 targets not only European crypto-asset service providers in compliance with Regulation (EU) 2023/1114 (MiCA) but also those located outside the EU yet operating within Europe.

Extension of CRS Scope to E-Money

By revising definitions related to « Depository Institutions » and « Depository Accounts, » DAC8 now includes entities managing e-money or Central Bank Digital Currencies in the CRS.

New Reporting Requirements under CRS

DAC8 enhances CRS with additional data on accounts, including the nature of the accounts, the existence of joint owners, and the role of controlling persons.

Improvements for Greater Tax Transparency

The directive also introduces novelties in the exchange of information on advance tax rulings for very high-income individuals and adjusts DAC6 by granting intermediaries a reservation right based on professional privilege.

Handling Sanctions within the EU

A significant departure from initial projections is the lack of harmonization of sanctions within the EU for non-compliance with DAC2, DAC6, DAC7, and DAC8.

Preparations for 2026:

Financial institutions must anticipate the implementation of DAC8 from January 1, 2026, by:

  • Ensuring their systems are compliant with the new requirements;
  • Updating their data collection and verification procedures;
  • Preparing to meet the new reporting requirements.

Implementing these requirements can be complex and requires meticulous preparation. Our team of specialists is available to delve deeper into these topics and assist you in implementing effective governance, including analysis of self-certifications, due diligence of service providers, updating procedures and controls, as well as specialized training.