Members of the European Parliament have called for a “effective taxation“of crypto assets and to a “better use of the blockchain” to counter tax evasion. A resolution to achieve both goals was approved by a large majority, who also want to see a simpler tax regime for small crypto-assets.
The European Parliament adopts a framework for uniform taxation of crypto-currencies in the EU.
European lawmakers have backed a non-binding resolution outlining a framework seeking to realize the implementation of blockchain technology in taxation and uniformly tax digital assets across the 27-member bloc.
The document, drafted by Lídia Pereira of the conservative European People’s Party group, was adopted on Tuesday with 566 votes in favor, while only seven members of the European Parliament voted against and 47 abstained.
Crypto assets should be subject to fair, transparent and efficient taxation, the resolution says. At the same time, it suggests that EU authorities consider introducing simplified tax treatment for occasional or small-scale operators and transactions.
The authors call on the European Commission, the executive body in Brussels, to first assess how EU nations currently tax crypto-currencies and identify different national policies in the fight against tax evasion through these assets.
The resolution further urges the adoption of a widely accepted definition of crypto assets and a consistent definition of what would constitute a taxable event. This could be the conversion of a crypto into a fiat currency, according to the text.
The cross-border nature of trading in crypto assets makes it important to know where the taxable event would have taken place, notes the resolution, cited by the European Parliament press office. It suggests adding crypto assets to the directive governing administrative cooperation in tax matters, which is part of the Union’s framework for information exchange.
The resolution advises national administrations to use all available tools to facilitate efficient tax collection and names blockchain as one of those tools. The technology could help automate tax collection, limit corruption and identify ownership of tangible and intangible assets, thereby better taxing mobile taxpayers, the document says.
The non-binding resolution comes after, earlier this year, the key institutions in the European Union’s legislative process – the Parliament, Commission and Council – agreed on a wide-ranging proposal to regulate the crypto space in the bloc. Crypto asset markets (MiCA), the legislative package is expected to introduce licenses for crypto-currency companies and safeguards for their customers. Consensus was also reached on anti-money laundering rules regarding crypto-currency transactions.