Denmark: DAC8 and CARF implementation law enters into force

The Danish Official Gazette published Law No. 409, which enacts national measures to implement Directive (EU) 2023/2226 on administrative cooperation in taxation (DAC8) and the OECD’s Crypto-Asset Reporting Framework (CARF). The law generally came into effect on May 1, 2025.

Key provisions of the law include:

1. Ministerial authority: Grants the Danish Minister of Taxation the power to define reporting, due diligence, and registration obligations for crypto-asset service providers and platform operators.

2. Scope of reporting: Clarifies the definition of reportable crypto-asset service providers and sets out the covered activities and reporting responsibilities.

3. Extension of AEOI rules: Expands the Common Reporting Standard (CRS) to include:

   • Digital assets

   • Central bank digital currencies

   • Non-custodial dividends

   • Cross-border advance commitments

4. Expanded DAC8 obligations:

   • Introduces a five-year record-keeping requirement for financial institutions and crypto-asset service providers

   • Adds new reporting rules for certain cross-border tax planning arrangements

5. Penalties: Establishes penalties for failing to comply with the new obligations.

The legislation aligns Denmark’s domestic tax framework with updated EU and OECD transparency standards.

Source: retsinformation.dk

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