DAC8 Transposition in Finland: Key Dates and Obligations

Finland combines a highly digitalized society with a transparent tax system, creating an environment where DAC8 implementation aligns naturally with existing regulatory expectations. The Finnish Tax Administration (Vero) has been proactive in providing guidance on crypto-asset taxation and is well-positioned to integrate DAC8 data into its enforcement activities.

Regulatory Environment

The Finnish Financial Supervisory Authority (Finanssivalvonta — FIN-FSA) oversees CASPs under Finland's AML framework. Finland was among the first EU countries to establish a registration requirement for virtual currency providers, effective since 2019 under the Act on Virtual Currency Providers (Laki virtuaalivaluutan tarjoajista).

The FIN-FSA's registration process requires CASPs to demonstrate adequate AML/CFT compliance, governance, and operational capabilities. This existing framework has given Finnish authorities visibility into the domestic crypto market.

Tax Treatment

Finland taxes crypto-asset gains as capital income at 30% for gains up to €30,000 and 34% for gains exceeding that threshold. The Vero has published detailed instructions on how to report crypto-asset transactions, including specific guidance on calculating acquisition costs, handling forks and airdrops, and reporting mining and staking income.

Finland's tax system is characterized by extensive third-party reporting and pre-populated tax returns, where the tax authority fills in known income sources and the taxpayer confirms or amends. DAC8 data will be integrated into this system, allowing Vero to pre-populate crypto-asset income and identify discrepancies.

Transposition Process

The Ministry of Finance (Valtiovarainministeriö) is responsible for transposing DAC8 into Finnish law. Implementation is expected through amendments to the Act on the Assessment Procedure for Taxes (Laki verotusmenettelystä) and related legislation governing international tax information exchange.

Vero will serve as the competent authority for DAC8 reporting and information exchange. Finland has a strong track record of timely DAC directive transposition.

Finnish TIN System

Finland uses the henkilötunnus (personal identity code) as the TIN for individuals. This 11-character identifier is assigned to all Finnish residents and is widely used in government and financial sector interactions.

For entities, the Y-tunnus (business ID) serves as the tax identifier. Both identifiers are well-established and routinely collected by financial service providers operating in Finland.

Expected Penalties

Finland's penalty framework for tax reporting violations includes tax increases (veronkorotus) of up to 30% of the additional tax assessed, administrative fines for failure to file required information reports, and potential criminal sanctions under the Tax Fraud provisions of the Criminal Code for intentional violations.

Impact on Finnish CASPs

For registered virtual currency providers, DAC8 will require extending data collection beyond AML requirements to include tax-specific information, implementing the DAC8/CARF XML reporting format, conducting look-back reviews on existing users to collect TINs and self-certifications, and preparing for integration with Vero's pre-populated tax return system.

Conclusion

Finland's digitalized tax system and established virtual currency provider registration framework provide a solid foundation for DAC8 implementation. CASPs operating in Finland should prepare for seamless integration of DAC8 data into Vero's existing enforcement infrastructure and anticipate that crypto-asset income will become increasingly visible to tax authorities.