Lithuania approved DAC8 rules imposing new reporting and due diligence obligations on crypto-asset providers and financial institutions from January 2026.
The Lithuanian government has approved a draft order implementing Council Directive (EU) 2023/2226 (DAC8), introducing new reporting and due diligence obligations for crypto-asset service providers and financial institutions.
DAC8, adopted by the European Council in October 2023, aims to enhance tax transparency by regulating reporting on e-money and crypto assets, exchanging information on cross-border rulings for high-net-worth individuals, and establishing penalties and compliance measures under the DAC framework. The directive is largely based on the OECD’s Crypto-Asset Reporting Framework (CARF) and the updated Common Reporting Standard (CRS) for automatic exchange of financial account information.
The rules establish the reporting and due diligence procedures that financial institutions must follow to identify and report the financial accounts of foreign residents for tax purposes, particularly concerning compliance with EU Directives and the Common Reporting Standard (CRS).
The order details specific requirements for reporting on new and existing personal and entity accounts, including criteria for determining account status, sum totals, and the necessary data points such as Tax Identification Numbers (TINs) and residency information. It also addresses the security and processing of personal data by both the financial institutions and the Tax Inspectorate.
The DAC8 reporting obligations are expected to take effect from 1 January 2026.
