The Netherlands wants to gather views from stakeholders before it submits a bill on crypto tax reporting to the House of Representatives by the first half of 2025.
The aim of the bill is to create more transparency to prevent tax avoidance and evasion, Folkert Idsinga, State Secretary for Taxation and Tax Authorities said.
The Netherlands launched a consultation on Thursday on a bill that would require crypto services to share their users’ data with tax authorities.
The European Union (EU) member state is making this step in response to a European directive – known as DAC8 – which requires crypto service providers in the EU to collect and report data about their users to tax authorities. These authorities exchange data with other member states.
The aim of the bill is to create more transparency to prevent tax avoidance and evasion, said Folkert Idsinga, the state secretary for Taxation and Tax Authorities, in a government statement.
“In the future, EU member states will be able to cooperate better thanks to the exchange of data and transactions with cryptos [which] will become transparent to tax authorities,” Idsinga said.
The country wants to gather views from stakeholders before the bill is submitted to the House of Representatives by the first half of 2025. The consultation will close on Nov. 21.
Countries around the world like the U.K. and New Zealand have been taking steps to implement the Organization for Economic Co-operation and Development’s tax reporting framework that is also meant to foster more transparency between nations.