Dutch Government Opens Public Consultation on Crypto Tax Reporting Bill
The Netherlands Ministry of Finance has launched a public consultation on proposed legislation that would require cryptocurrency service providers to collect and share user data with tax authorities, aligning with European Union standards.
The draft bill, announced on October 24, aims to enhance transparency in crypto ownership and prevent tax evasion by mandating crypto exchanges and platforms to report user transaction data to the Dutch Tax Administration (Belastingdienst). The legislation comes in response to the EU’s DAC8 directive, which established unified crypto tax reporting rules across member states last year.
“With this bill, we are taking an important step in the taxation of cryptocurrencies,” said Folkert Idsinga, State Secretary for Tax Affairs and Tax Administration. “In the future, EU member states will be able to cooperate better thanks to the exchange of data, and transactions with cryptos will become transparent to tax authorities.”
While the new requirements will affect service providers, the Ministry emphasized that crypto holders’ obligations remain unchanged, as they are already required to report their holdings in tax returns. The proposed framework aims to reduce administrative burden on crypto businesses by requiring them to report only in their country of registration, rather than to multiple EU jurisdictions.
Notably, the legislation also includes provisions for sharing data with non-EU nations that have adopted the Organisation for Economic Cooperation and Development’s Crypto-Asset Reporting Framework (CARF). This would extend data sharing to countries such as the United States, United Kingdom, Canada, Australia, and Singapore.
Stakeholders can submit their feedback on the proposed regulations until November 21, 2024. The government plans to present the final bill to the Dutch House of Representatives in the second quarter of 2025, with implementation targeted for January 1, 2026.
The Netherlands’ initiative follows similar moves by other EU members, including Denmark’s recent proposal to tax unrealized crypto gains, as European nations work to establish comprehensive cryptocurrency taxation frameworks.
