The Organisation for Economic Co-operation and Development (OECD) will propose a fiscal framework for cryoactives to its 37 member countries as early as 2021.
A standard to better tax your cryptos
The OECD’s mission is to „promote policies that will improve economic and social well-being worldwide“. To this end, the organisation has its Centre for Tax Policy and Administration. Its main task is to promote the exchange of information between the tax authorities of member countries. But it also issues conventions aimed at harmonising their taxes (fiscal federalism) in order to combat tax evasion.
The best known is the OECD Model Convention on Exchange of Information on Tax Matters, or CRS (for Common Reporting Standard). It is notably these recommendations that have limited banking secrecy since 2005.
According to the Director of the Centre for Tax Policy Bitcoin Union and Administration, Pascal Saint-Amans, a similar framework will be introduced for cryptos in 2021 :
Basically, the idea is to have a standard that would be roughly equivalent to the SRC, if not the SRC. It will probably be delivered during 2021.
This standard will not contradict the directives of entities such as the European Commission, according to Saint-Amans.
Taxes, that puts everyone in agreement
For its part, the European Union is seeking to amend its Directive on Administrative Cooperation in Tax Matters (CAD). Its proposal was published on 23 November.
According to Saint-Amans, the amendment will be in line with OECD recommendations:
The OECD proposal will be „complementary“ to ongoing work in the EU. But the OECD is likely to set its standard before the EU. This will be an opportunity for the EU to align with our standard. …] The right comparison is not the Digital Services Directive, but rather all the many directives where the EU has implemented OECD standards. The seventh version of the DAC is an example of these, which is fully in line with what we are doing.
Further control of encryption and other digital assets is therefore expected by 2021. Between taxes and increased financial supervision, all will not be rosy for the cryptos holder.