According to the OECD director, there will be a new unified crypto tax reporting standing by 2021. It will be known as the Common Reporting Standard (CRS). The OECD is working toward setting a unified approach to handling virtual currency tax.
A news article on Btcmanager states that the news comes in as many G20 countries are levying taxes on exchanges and traders dealing with cryptocurrency. The governments want tight rules and laws in place to ensure that no malpractice happens.
The Organization for Economic Co-operation and Development (OECD) has taken note of it and designing a unified approach to handling virtual currency tax. They are planning to have taxation on par with global CRS principles.
Pascal Saint-Amans, the OECD tax policy administrator, said that the move is based on discussion with several agencies for a unified approach to dealing with cryptocurrency taxation. They want to do this to avoid the emergence of regulatory arbitrage.
XBTmoney had tweeted about the development of unified crypto tax reporting standard tax.
In 2014, the OECD came up with CRS to combat tax evasion. They want to use the same principle to work on crypto taxes. Amans said that the idea would be to design something that is “roughly equivalent to CRS,” and bring it by 2021.
A news article on Theworldcryptonews reports that the European Commission was keen on launching a method to modify tax evasion laws for cryptocurrency. The move was published on November 23rd, and the European Commission received feedback on December 21st.
The new taxation laws are expected to be implemented by the third quarter of 2021. Amans suggests that the OECD will come with the crypto taxation laws before Europe. When there is simultaneous development which is not coordinated, then the results could be bad.
He spoke to Law360, indicating that the organization is working along with the EC to avoid any overlaps as much as they can. The crypto tax laws measure how the specific nation views the cryptocurrency market.
Singapore has exempted income through hard forks and airdrops. Likewise, Iran is providing taxation breaks for miners who repatriate foreign earnings. These are encouraging signs that countries are willing to take steps in this direction.