Why things are now getting tight for crypto tax evaders in Austria

“The risk of being discovered is quite high,” says Johannes Edlbachertax expert at PwC Austria. Not only trading venues from EU member states have to report transactions, 40 countries from third countries, including Great Britain, South Africa and Brazil, have also committed to complying with the OECD’s Crypto-Asset Reporting Framework (CARF). “The network is getting narrower,” says the tax expert.

The first reports for 2026 are likely to be at the local tax offices Early to mid-2027 enter. In 2028, crypto exchanges from the United Arab Emirates (UAE) will also follow reporting requirements. The USA should also be there from 2029.

Must be reported by the trading venues Transactions from this year. First of all, to the tax authorities of your own country, which then forward the data of Austrian citizens to the local tax department.

For crypto exchanges with headquarters or branches in Austria, capital gains tax on profits has been automatically paid to the tax authorities since the beginning of 2024. Many investors may therefore have switched to trading venues in other countries in recent years. Also for administrative reasons, as Edlbacher suspects. Because the proof of acquisition costs and time of acquisition required to calculate the tax can sometimes be laborious.

Im Ministry of Finance It is expected that taxpayers who currently hold crypto assets abroad for tax (avoidance) reasons will shift their crypto assets back to domestic providers due to the data exchange, also because of the advantage of the automatic KeSt deduction, according to KURIER’s request. Therefore, additional tax revenue is already expected this year 5 million euros. For 2027 become round 35 million euros of additional tax revenue is forecast.

“Financial responds quite quickly”

Reporting requirements for investment transactions are not new. It has been around for securities since 2016. “We see in practice that finance reacts quite quickly,” says Edlbacher.

The tax expert assumes that if tax offenses in crypto transactions from 2026 are exposed, tax officials will soon ask questions about previous years. If transaction data cannot be provided, it will be estimated. Usually the tax office then 50 percent of the proceeds from the sale of assets is assumed as profit, says Edlbacher.

90 percent are not likely to be taxed correctly

Relevant studies on tax compliance suggest that a maximum of ten percent of investors also declare their gains from cryptocurrency transactions in their tax returns. The 90 percent are not taxed correctly is realistic, says tax expert Edlbacher. “We see that in practice.”

What penalties are there? Depending on whether it is the first offense and how high the amounts evaded are, there are penalties between 30 and 200 percent of taxes not paid. The willingness of taxpayers to cooperate also plays a role in determining penalties.

What should tax evaders do? Edlbacher advises crypto tax evaders to self-report. You shouldn’t take too much time with it. They only protect you from criminal proceedings if strict formal requirements are met and the tax authorities do not yet know about a tax offense. The first reports from crypto exchanges are unlikely to be received by domestic tax offices until the middle of next year, but proving transactions can be complex, says the tax expert.