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.
KPMG observation
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
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.