New Reporting Requirements from 2026: German Crypto Asset Tax Transparency Act Creates Comprehensive Control System
With DAC8 and CARF, an international reporting system for cryptocurrencies will be established from 2026, providing tax authorities with nearly complete transparency over Bitcoin transactions for the first time.
A new era of tax transparency for Bitcoin and cryptocurrencies begins in Germany in January 2026. The newly enacted Crypto Asset Tax Transparency Act (KStTG) transposes the EU Directive DAC8 into national law and requires crypto service providers to submit comprehensive reports to tax authorities [1].
Exchanges will be required to record all transaction data of their users and report it to the Federal Central Tax Office by July 31 of the following year – including personal information, deposits and withdrawals, purchases, sales, and wallet balances [1]. In parallel, CARF, a global OECD standard, takes effect, obligating trading platforms outside the EU in the USA, United Kingdom, and Asia to share data as well [1].
The basic tax rules remain unchanged: Profits from Bitcoin sales are tax-free after a holding period of twelve months, while a shorter holding period is subject to a tax-free threshold of 1,000 euros [1]. Referral and affiliate income must also be fully declared from 256 euros per year [1].
Tax experts Dr. Ingo Heuel and Elias Tück from the LHP Group recommend that investors maintain complete documentation of all transactions and take screenshots of their holdings at the end of 2026 [1]. December 31, 2026 takes on particular significance for voluntary disclosures that exempt from punishment, as the discovery of tax offenses becomes imminent once exchanges begin reporting [1].
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