23.12.2025Upper house approves DAC 8 implementation law
Law implements EU directive on tax transparency rules for crypto asset transactions into domestic tax law
On 19 December 2025, Germany’s upper house of parliament approved the Cryptocurrency Tax Transparency Act (Kryptowerte-Steuertransparenzgesetz) implementing Council Directive (EU) 2023/2226 (“DAC 8”) into domestic tax law. The lower house of parliament approved the bill earlier on 6 November 2025, and it must now be signed by the president and published in the federal gazette to become effective.
The core of the law introduces a new reporting standard for crypto asset transactions, and also includes an extension of the Common Reporting Standard to include new digital financial products, as well as an amendment to the Platform Tax Transparency Act, which was introduced in 2022 as a result of Council Directive (EU) 2021/514 (“DAC 7”).
The first draft of the law was originally published on 25 October 2024; however, due to the change in government and the snap elections in February 2025, the progress of the bill was significantly delayed.
DAC 8, which was approved by the European Council in October 2023, introduced rules that provide for the reporting and exchange of information for tax purposes on electronic money and crypto assets, the information exchange related to cross-border rulings concerning high net worth individuals, and penalties and compliance measures for the various reporting obligations under the DAC framework. EU member states must implement into domestic law the main rules of DAC 8 by 31 December 2025, with the rules applying as from 1 January 2026. However, several parts of DAC 8, such as the tax information number reporting system, need only be implemented by the end of 2027 (or 2029). The approved law covers only the provisions of DAC 8 that require implementation by 31 December 2025 and apply as from 1 January 2026.
The Crypto Asset Tax Transparency Act in the approved law introduces extensive recording, due diligence, and reporting obligations for providers of crypto services. Similar to the Platform Tax Transparency Act, additional tax transparency is introduced in the area of crypto assets. Information about transactions carried out by users of crypto assets are required to be reported by providers of crypto services. This applies, among other things, to exchanges of crypto assets for fiat money (e.g., euros) and to transfers of crypto assets. The first reporting period is going to be calendar year 2026.
The law also includes an amendment to the Platform Tax Transparency Act (implementation of DAC 7 into domestic tax law) regarding the clarification of the definition of identification services and certain reporting simplifications related to the use of electronic procedures to determine the identity and tax residence of a provider by platform operators.
Furthermore, the approved law slightly amends the provisions on reportable cross-border arrangements (“DAC 6”). Starting from 1 January 2026, it will be mandatory to provide, in addition to an abstract description of the business activity and the arrangement, "all other information that could assist the responsible authorities in assessing a tax risk." In addition, a penalty mechanism is introduced for notifications that are filed as "incorrect."
The signature from the president and the publication in the federal gazette should be mere formalities and can be expected to take place before year end.
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