The Directive on Administrative Cooperation (DAC) establishes an EU-wide system for automatic exchange of tax information, aiming to boost transparency, prevent tax evasion and avoidance, and promote fair taxation across Member States. Since its initial adoption, the directive has been amended multiple times, each time expanding the scope of information shared.
The individual DAC Amendments to date are the following:
What follows is a brief explanation of each DAC amendment.
DAC 1 — Categories of Income and Assets
DAC 1, introduced in 2011, began exchanging data on income, pensions, insurance, property, & later royalties (DAC 7, 2025) and non-custodial dividends (DAC 8, 2026), giving tax authorities visibility into cross-border assets and income to ensure tax fairness.
DAC 2 — Financial Account Information (CRS/FATCA)
Introduced by Directive 2014/107/EU and in effect since 1 January 2016, DAC 2 requires financial institutions to report account balances, dividends, interest, sales of financial instruments, & insurance contracts, following the OECD's CRS and FATCA rules. Aimed at combating cross-border tax evasion, it enabled the automatic exchange of around 127 million accounts worth €8.47 trillion between 2018 and 2023, generating €680 million in tax benefits in 2022.
DAC 3 — Cross-border Tax Rulings and Advance
Pricing
Arrangements
DAC 3's purpose as introduced via Council Directive 2015/2376 was to amend DAC 1. This requires tax authorities to exchange information on rulings and APAs given to cross-border situations as part of the OECD's BEPS Action 5, enhancing transparency around preferential tax treatments granted across borders.
DAC 4 — Country-by-Country Reporting (CbCR)
Directive 2016/881, amending DAC 1, introduced DAC 4, requiring large multinationals (≥€750 million revenue) to report annual revenue, profits, taxes paid, employees, and activities by territory. WhileDirective 2021/2101 mandates public CbCR from 2026, DAC 4 continues to require comprehensive private reporting.
DAC 5 — Access to Anti-Money Laundering Information by Tax Authorities
Adopted in December 2016, DAC 5 allows tax authorities to access AML information collected under the EU's AML Directive, enabling the use of customer due diligence data from banks, accountants, and lawyers for tax compliance. Unlike DAC 2 or 6, it does not create a new reporting framework, serving instead as a complementary measure to enhance cooperation between tax and AML authorities.
DAC 6 — Reportable Cross-border Arrangements (Mandatory Disclosure)
Promulgated under Directive 2018/822 and in effect since 1 July 2020, DAC 6 requires intermediaries, such as tax advisors and lawyers, to report cross-border arrangements that meet specific hallmarks indicating potential tax avoidance, based on the "main benefit test," which flags arrangements where obtaining a tax advantage is a primary expected benefit. Reports must be submitted within 30 days of the arrangement being available, ready, or implemented, and tax authorities forward them to all Member States within a month after the quarter ends. DAC 6 aims to curb aggressive tax planning and enhance early-warning transparency.
DAC 7 — Platform Operators Reporting
This requires online platforms (e.g., marketplaces for rentals or services) to report seller income data to tax authorities, enabling exchange within the EU, thus closing the digital economy reporting gap, & giving tax authorities visibility into gig economy & e-commerce earnings.
The Main Focus: DAC 8
DAC8 (Council Directive (EU) 2023/2226, Oct 2023) extends automatic information exchange to crypto-assets, requiring providers like exchanges and wallets to report user tax data on crypto transactions under the OECD's CARF, mirroring DAC2's CRS framework, ensuring cross-border crypto gains are visible to tax authorities.
Crypto-Asset Reporting (CARF) and DAC 8 Scope
Under DAC8, crypto-asset service providers (CASPs) must perform
due diligence and report EU taxpayers' crypto transactions,
covering a wide range of tokens under MiCA, including decentralised
coins, stable-coins, e-money tokens, certain NFTs, and
non-custodial tokens.
Providers outside the EU serving EU residents must register and
report in a Member State. Annual reports include provider and user
identities, tax residency, and transaction details, submitted to
the provider's tax authority, which shares data with the
user's country. Enforcement is left to Member States, requiring
effective and proportionate sanctions.
Enhancements to the CRS (DAC2)
DAC 8 adopts the 2023 CRS update alongside CARF, expanding the Common Reporting Standard to include crypto assets, e-money, CBDCs, and indirect crypto investments. "CRS 2.0" requires extra reporting on account type, controlling person, and validity of tax self-certifications, flagging inconsistencies. Non-profit organisations receive a carve-out, ensuring crypto and e-money holdings are treated like other financial accounts, closing prior CRS gaps.
How DAC8 Builds on Earlier DACs
DAC8 uniquely targets crypto-assets, treating crypto service providers like banks for reporting purposes. It expands mandatory tax reporting to CASPs, e-money institutions, and financial institutions, aligning with CARF and updating CRS: essentially, DAC 8 for crypto mirrors DAC 2 for bank accounts and DAC7 for digital platforms.
Implementation Timeline and Provider Obligations
EU countries must adopt DAC 8 by 31 December 2025, with rules
effective 1 January 2026. Crypto-service providers will report 2026
transactions in early 2027, typically by 31 January, with
authorities
exchanging data by September.
CASPs, including non-EU providers serving EU clients, must
register, verify client tax IDs and residency, avoid duplicate
reporting, and submit annual standardised reports detailing
provider and user info, transaction types, amounts, and counts.
They must also update IT systems, compliance processes, and staff
training.
What is Malta's Approach?
Malta will implement DAC 8 by 31 December 2025, adopting OECD CARF standards and CRS updates. DAC 8 covers decentralised crypto, NFTs, stable-coins, e-money tokens, CBDCs, and crypto derivatives. Maltese-licensed CASPs under the Virtual Financial Assets Act and MiCA-based Act 647 will integrate DAC 8 due diligence and reporting rules, aligning local law with the EU directive.
Concluding Remarks
As seen from the above information, DAC 8 expands the EU's tax-transparency framework to crypto- assets, aligning with OECD standards to make crypto income reportable. From 2026, EU countries, including Malta, will require crypto firms to track cross-border gains. Since DAC1, the framework has progressively adapted to new assets and technologies, safeguarding Member States' fiscal integrity.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
