DAC8 Self-Certification Process: How to Collect Tax Residency Data

The self-certification is a formal declaration by the user confirming their jurisdiction(s) of tax residency. It is a cornerstone of the DAC8 due diligence process and must be collected from every reportable user.

What Is a Self-Certification?

A self-certification is a signed declaration (physical or electronic) in which the user confirms their full name and address, their date of birth (for individuals), each jurisdiction in which they are tax resident, their TIN for each jurisdiction of tax residency, and that the information provided is true, correct, and complete.

The self-certification shifts part of the responsibility for accurate tax residency determination to the user, while the CASP retains the obligation to validate the information against other data it holds.

When Must Self-Certifications Be Collected?

New users. Self-certifications must be collected at the time of account opening, before or at the point of the first reportable transaction. CASPs should not allow trading or transfers until a valid self-certification has been obtained.

Existing users. CASPs must obtain self-certifications from existing users through the look-back process. The deadline for completing this process is determined by each Member State's transposition legislation.

Format and Delivery

Self-certifications can be collected electronically through the CASP's platform (integrated into the onboarding flow), via a dedicated form sent to the user by email, or in paper form where electronic collection is not practical.

Electronic self-certifications are the most efficient approach and should include a clear statement of the information being declared, a confirmation checkbox or digital signature, a timestamp recording when the certification was completed, and a mechanism to store the certification for the required retention period.

Validation Requirements

CASPs must not accept a self-certification at face value if they have reason to believe it is incorrect. Validation involves checking the self-certification against other information held by the CASP, including the user's address on file, their IP address and geolocation data, their phone number country code, their payment method (bank account jurisdiction), and their identity document (nationality and place of birth).

If any of this information conflicts with the self-certification, the CASP must either obtain additional documentation from the user to resolve the discrepancy or treat the user as tax resident in both the self-certified jurisdiction and the jurisdiction indicated by the conflicting information.

Change of Circumstances

If information changes — for example, a user updates their address to a different country — the CASP must request a new self-certification within a reasonable timeframe. Failure to update self-certifications after a change of circumstances could result in incorrect reporting.

Conclusion

Self-certification collection is a mandatory and ongoing obligation under DAC8. CASPs must build processes that collect certifications at onboarding, validate them against available data, and update them when circumstances change. Electronic collection integrated into the user journey is the most efficient approach.