Members of the European Parliament have called for “effective taxation” of crypto assets and “better use of blockchain” to combat tax evasion. A proposal aimed at achieving both objectives has been approved by a large majority that wants small crypto traders to enjoy a simpler tax regime.
European Parliament adopts framework for uniform taxation of cryptocurrencies in the EU
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European lawmakers have backed a non-binding resolution that establishes a framework to achieve taxation and equitable implementation of blockchain technology in digital assets across the 27-strong bloc.
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The document, drafted by Lidia Pereira from the European People’s Party’s conservative group, was adopted on Tuesday with 566 votes, while only seven members of the European Parliament voted against it and 47 did not.
The proposal states that crypto assets should be fair, transparent and subject to effective taxation. Also, it suggests that EU authorities should consider introducing a simpler tax treatment for occasional or small traders and transactions.
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The authors are calling on the European Commission, the executive body in Brussels, to first assess how EU countries are currently taxing cryptocurrencies and identify different national policies in the fight against tax evasion through these assets. We do.
The proposal further emphasizes the adoption of a widely accepted definition of crypto assets and a coherent definition of what constitutes a taxable event. According to the text, it could be the conversion of a crypto to fiat currency.
The cross-border nature of crypto trading makes it important to know where the taxable event would have occurred, notes the resolution quoted by the Press Service of the Parliament of the European Union. It suggests adding crypto assets to the directive governing administrative cooperation on taxation matters, part of the Union’s framework for the exchange of information.
The proposal advises national administrations to use all available tools to facilitate efficient tax collection and points to blockchain as one of these tools. The document said the technology could help automate tax collection, limit corruption and identify ownership of tangible and intangible assets, thereby better taxing mobile taxpayers.
The non-binding proposal comes after earlier this year, the Parliament, the Commission and the Council – the key institutions in the EU’s legislative process – agreed on a comprehensive proposal to regulate the crypto space in the bloc. Market in crypto assets (asbestosThe legislative package is expected to introduce licensing for crypto companies and safeguards for their customers. Anti-money laundering rules regarding cryptocurrency transactions were also agreed upon.
Do you think EU member states and institutions will implement the non-binding resolution adopted by the European Parliament? Tell us in the comments section below.
