OECD: Countries issue joint statement to commit to cryptoasset reporting framework by 2027
A joint statement by 48 countries announced that they will be committing to implement the OECD cryptoasset reporting framework by 2027
Countries issue joint statement to commit to cryptoasset reporting framework by 2027
A joint statement by 48 countries on 10 November 2023 announced that they will be committing to implement the OECD cryptoasset reporting framework (CARF) by 2027.
According to a Policy Paper from the United Kingdom, the group of countries intends to transpose CARF into domestic law and activate exchange agreements in order to commence exchanges by 2027. Read Collective engagement to implement the Crypto-Asset Reporting Framework on the HM Treasury webpage. The announcement notes that the group of countries recognizes that timely and consistent implementation of CARF is necessary to provide that global tax transparency achievements are not eroded through the growth of global cryptoasset markets.
The Policy Paper points out that the common reporting standard (CRS) signatory jurisdictions will also implement amendments to CRS as agreed to by the OECD earlier this year. For a detailed analysis of CARF and the amendments to CRS, read TaxNewsFlash.
The list of jurisdictions committing to the implementation of CARF under the joint statement includes the following: Armenia, Australia, Austria, Barbados, Belgium, Belize, Brazil, Bulgaria, Canada, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Netherlands, Norway, Portugal, Romania, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, the United Kingdom, and the United States of America; the Crown Dependencies of Guernsey, Jersey, and Isle of Man; and the United Kingdom’s Overseas Territories of the Cayman Islands and Gibraltar.
Notably, the United States is listed as one of the participating countries under the joint statement.
There is coordination between the CARF and CRS frameworks, including some instances when CARF provides carve outs for transactions or products that would be subject to reporting under amendments to CRS. As the United States is not a participating jurisdiction under CRS, it is unclear at this time how the United States will implement these CRS amendments related to digital assets, and whether there are considerations being made to also implement CRS provisions.
A recent proposal in the U.S. administration’s “Green Book”—a 226-page explanation of the tax proposals in the administration’s FY 2024 budget—discussed an expansion of certain provisions under FATCA to accommodate the additional reporting. Read the Green Book [PDF 2.1 MB]. However, it is clear that there is strong interest in digital asset reporting in the United States, as evidenced by recent activity around the digital asset proposed regulations. Read TaxNewsFlash
Read a November 2023 report [PDF 553 KB] prepared by KPMG LLP
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