DAC8 Reporting in the Czech Republic: Practical Guide

The Czech Republic has a growing crypto-asset market and has been developing its regulatory approach to digital assets. The Czech tax administration, Financni sprava (Financial Administration), is expected to implement DAC8 reporting requirements as part of the broader EU harmonisation effort. This guide covers the practical aspects of DAC8 compliance for entities operating in the Czech Republic.

National Authority

The Financni sprava Ceske republiky (Financial Administration of the Czech Republic) is the competent authority for tax administration, including international exchange of information. The Generalni financni reditelstvi (General Financial Directorate) serves as the central coordinating body. The Financial Administration already manages CRS and FATCA reporting obligations. The Ministry of Finance (Ministerstvo financi) is responsible for the legislative transposition of the DAC8 directive.

Submission Requirements

The Czech Republic has been investing in the digitisation of its tax administration, and DAC8 submissions are expected to be handled electronically.

• Format: Reports should follow the OECD CARF XML schema as specified by DAC8. The Financial Administration may publish supplementary technical guidance for Czech submissions.
• Language: Official tax administration in the Czech Republic is conducted in Czech. The standardised XML data fields should follow international formats, but any accompanying documentation should be in Czech.
• Submission channel: The Financial Administration may integrate DAC8 reporting into its existing electronic communication systems, such as the Danovy portal (Tax Portal) or the data box (datova schranka) system. The exact submission method is to be confirmed by the authority.
• DIC number: Reporting entities will typically need a Czech tax identification number (DIC - Danove identifikacni cislo) for tax filings.

Transposition Status

The Czech Republic must transpose the DAC8 directive into national law by December 31, 2025. The transposition typically involves an amendment to existing tax legislation or a new law (zakon) passed by the Parliament (Poslanecka snemovna and Senat). The Czech Republic has had varying experiences with EU transposition timelines. Reporting entities should monitor the Sbirka zakonu (Collection of Laws) for the publication of implementing legislation.

Local Variations

The Czech Republic may introduce specific national elements:

• Evolving crypto tax framework: The Czech Republic has been refining its approach to crypto-asset taxation. Recent legislative changes may have introduced more specific provisions. DAC8 data may be used to verify compliance with domestic tax rules.
• CNB coordination: The Czech National Bank (Ceska narodni banka, CNB) oversees financial markets. DAC8 reporting may be coordinated with MiCA regulatory requirements.
• Data box system: The Czech Republic has a well-established electronic data box (datova schranka) system for official communications. This may be relevant for DAC8 correspondence with the tax authority.
• Growing digital economy: The Czech Republic's active tech sector and growing crypto market may lead to specific attention on DAC8 compliance.

Key Dates

• Transposition deadline: December 31, 2025 (directive must be incorporated into Czech law)
• Data collection begins: January 1, 2026 (reporting entities should begin collecting relevant data)
• First reporting period: Calendar year 2026
• First reports due: 2027 (exact date to be confirmed by the Financial Administration)

Practical Tips

• Obtain a data box: If you do not already have a datova schranka, consider setting one up, as it may be required for official communications with the tax authority.
• Monitor Financial Administration announcements: The Financni sprava website publishes guidance and technical documentation. Watch for DAC8-specific publications.
• Ensure rodne cislo collection: The Czech Republic uses birth numbers (rodne cislo) for individual identification. Ensure your systems can collect and validate these for Czech reportable persons.
• Prepare Czech-language capabilities: Ensure your compliance team or local representatives can handle communications in Czech.
• Engage with the General Financial Directorate: The central authority may provide specific implementation guidance. Monitor their communications closely.
• Seek local professional advice: Consider engaging Czech danovi poradci (tax advisors) with experience in international reporting and digital assets.

Important Notice

This guide provides general information about DAC8 reporting in the Czech Republic. Requirements may change as the directive is transposed into national law. The information presented here should not be treated as definitive legal or tax advice. Always consult the Financni sprava and the Ministry of Finance for the latest official requirements. For specific compliance questions, seek advice from qualified Czech tax professionals.