International crypto tax standards to be introduced in 2021 says OECD tax director. Director of the OECD’s Centre for Tax Policy and Administration, Pascal Saint-Amans stated that the 37-nation organization will adopt a common reporting standard, or CRS, for crypto assets in 2021.
According to Law360, Amans stated that the crypto tax standard “would be roughly equivalent to the CRS” established by the Organisation for Economic Co-operation and Development to combat tax evasion.
The director attributed the likely development of the crypto tax CRS to a desire to introduce stronger standards surrounding crypto regulations among its member-countries “The timeline to deliver is probably ’21, sometime in ’21, because there is an appetite by all countries now.”
Amans’ comments come days after the European Commission initiated a process to update and expand its tax evasion regulations on crypto assets. The proposal was released on 23 November, with the EC set to obtain public input on the initiative until 21 December. New legislation is scheduled to be adopted in the third quarter of 2021.
Despite the action taken by the EC, Amans expects that the OECD will establish crypto tax standards before Europe, describing the policy arena as an “opportunity for the EU to align with [the OECD’s] standard.”
However, uncoordinated simultaneous development could result in the OECD and Europe establishing particular policy positions that contradict each other — threatening to create regulatory challenges for the OECD’s European members, as has been recently seen concerning the taxation of digital services.
However, Amans rejected these concerns, arguing that any OECD proposal would be “complementary” to EU regulations. In the sense of Law 360, the EC spokesperson confirmed that the organisation is working “in parallel” with the OECD to “avoid overlaps or inconsistencies to the extent possible.”
“At the same time the specific situation of the EU and its member states needs to be taken into account,” they added.
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