With the increase in the prevalence of cryptocurrencies, the tax plans of governments began to take shape.
The crypto taxation plans of the government and the blocks are taking shape day by day. Documents on the European Union’s taxation plans for cryptocurrencies and many innovations brought by technology were shared.
EU’s Documents on Taxation of Cryptocurrency and Technology Innovations Shared
The draft laws, scheduled to be agreed upon next week, will require crypto companies to register with tax authorities, even if they are based off the block or offer NFTs.
According to the draft laws released, the European Union plans to force crypto companies to provide tax authorities with details of their clients’ assets.
The data sharing law, based on a model from the Organization for Economic Co-operation and Development (OECD), is expected to be approved by finance ministers next week. However, it will allow tax authorities to share data within the 27-nation bloc.
Commission officials said the bill was passed unanimously at a meeting Wednesday. The May 5 bill closely matches proposals made by the European Commission in December 2022 as part of a proposal to stop EU residents from storing crypto abroad to hide it from the tax officer.
