Soon a new global framework for crypto assets: OECD

The much-anticipated new global tax transparency framework for reporting and exchange of information between tax administrations with respect to crypto assets (Crypto Assets Reporting Framework) and amendments to the Common Reporting Standard (CRS) report will be published on October 10, the OECD said so.

This will be released for the next G20 meeting, he added after hosting the 14th meeting of the Inclusive Framework on BEPS on October 6-7.

The 14th meeting also discussed work on an implementation package for a consistent national and international application of CARF which will include three elements: (i) the design of an international framework for the automatic exchange of information collected in the CARF framework, (ii) IT solutions to support automatic exchange and (iii) development of effective implementation requirements.

Recall that the G20 asked the OECD to develop a framework for the automatic exchange of information on cryptographic assets.

The new framework would provide for the collection and exchange of relevant tax information between tax administrations, with respect to persons carrying out certain transactions in crypto assets.

At the meeting convened by the OECD last week, which was attended by over 500 delegates from over 135 jurisdictions, there were public sessions on: (i) tax transparency, (ii) the future of tax administration and digitalization, and (iii) taxation and development, among others.

During the meeting, participants discussed a report on Tax Incentives and the Global Minimum Corporate Tax presenting concrete proposals for emerging and developing countries to consider in preparation for its implementation. work.

The Inclusive Framework meeting also discussed capacity building initiatives, including the roadmap for developing countries and the latest progress report of the Tax Inspectors Without Borders initiative.

Regarding the implementation of the two-pillar solution, participants reiterated that the Inclusive Framework will aim to finalize a new multilateral Convention for the implementation of the first pillar by mid-2023, for entry into force in 2024. .

EXPERT ADVICE

Sudin Sabnis, Partner, Nangia Andersen LLP, said: “Of particular significance in the context of ongoing tax and regulatory developments on the recognition and taxation of cryptocurrencies in India, a new framework for reporting crypto assets ( CARF) is published to develop an implementation package for the design of an international framework for the automatic exchange of information and its effective implementation.

Interestingly, the implementation of the two-pillar solution was indicated as being on track despite the non-committal positions of key countries and the delay in implementing the first pillar with a new multilateral convention was reiterated at the mid-2023 with an optimistic entry into force. by 2024.