The Organisation for Economic Cooperation and Development is next year planning to release a tax-reporting framework for crypto-assets based on the common reporting standard (CRS).
The common reporting standard is the global standard for the automatic exchange of tax information related to financial assets and income.
The OECD aims to ensure tax transparency with respect to crypto assets and the income derived from the sale of these types of assets.
We will continue our cooperation for a globally fair, sustainable, and modern international tax system
In a report published earlier this week, the OECD said it was "advancing its work to design a tax reporting framework that will ensure tax transparency with respect to crypto-assets, including the income derived from the sale of such assets."
The new framework could be implemented by countries across the G20 in strengthening existing laws around disclosures for digital asset transactions, building on efforts dating back to 2018 around building a new model for digital currency taxation.
The way crypto assets are defined vary greatly by jurisdiction. Cryptocurrency is most commonly defined as a "financial instrument or asset", followed by a "commodity or virtual commodity." In the US, the asset class remains mostly undefined for tax purposes.
The report analyses existing approaches and key policy gaps in 50 jurisdictions, by looking at the definitions, legality and valuation of virtual currencies. It analyses the tax consequences across the different stages of the crypto lifecycle from creation to disposal.
The report also describes the tax treatment of virtual currencies - from the perspective of income, consumption and property taxation - highlighting key taxable events and the different approaches of countries to taxation.
A statement from the G20 Finance Ministers & Central Bank Governors Meeting back in July said the covid-19 pandemic had accelerated the importance of more effective taxation for digital currency and digital assets.
"We will continue our cooperation for a globally fair, sustainable, and modern international tax system. We acknowledge that the covid-19 pandemic has impacted the work of addressing the tax challenges arising from the digitalization of the economy. We stress the importance of the G20/OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS) to continue advancing the work on a global and consensus-based solution with a report on the blueprints for each pillar to be submitted to our next meeting in October 2020."
"We remain committed to further progress on both pillars to overcome remaining differences and reaffirm our commitment to reach a global and consensus based solution this year."
The "comprehensive implementation package" is expected to be presented to the G20 in 2021.