OECD unveils reporting rules for cryptoassets
Date: 2023-06-12 Categories: CRYPTO PAYMENTS
The recommendations developed by the structure are not mandatory, but serve as a guide for the regulators of the participating countries.
“The new international tax transparency standards aim to further strengthen efforts to combat tax evasion in a digital and globalized world economy,” said OECD Secretary General Matthias Kormann.
In the document, the OECD acknowledged the impact of the crypto industry on the economy, including tax revenues in different countries.
CARF has three main components:
rules for collecting relevant tax information, such as the volume of assets and organizations that carry out transactions with them;
a new multilateral body to enforce them;
an electronic XML format for the exchange of information between regulators.
The amendments to the CRS include a section on CBDCs, which may be subject to tax compliance requirements.
The document also adds the term Specified Electronic Money Product, which covers digital representations of fiat currency.
The OECD regulates the mechanism of how legal entities and individuals using cryptocurrencies should be controlled and taxed. The CRS contains concepts like wallets, exchanges, DLTs, and digital asset-based derivatives.
