Proposal to oblige crypto-asset service providers to provide information on crypto-asset users
After the submission, the Seimas approved draft laws prepared by the Ministry of Finance that would impose an obligation on crypto-asset service providers to provide the State Tax Inspectorate (STI) with information on their crypto-asset users. These amendments would facilitate the fight against tax fraud, tax evasion and tax avoidance at EU level.
Under the proposed new regime, which would enter into force on 1 January next year, the information provided by crypto-asset service providers in relation to their crypto-asset users would be exchanged with other EU Member States in a targeted manner by the STI and which at the same time would receive from them, accordingly, the data on Lithuanian residents who are crypto-asset users, in order to protect the tax revenue of the EU Member States.
Reporting crypto-asset service providers should collect and report information on their reportable crypto-asset users – residents of the EU Member States, including residents of Lithuania and third countries – to the STI once a year for the previous calendar year.
The proposed legislative amendments transpose the provisions of the Directive on administrative cooperation in the field of taxation and harmonise reporting standards for crypto-assets across the EU in line with the framework developed by the Organisation for Economic Cooperation and Development (OECD).