New 2027 Deadline for International Crypto Tax Standard

48 countries have pledged to implement a new tax-transparency standard by 2027. This agreement, focusing on crypto exchanges, aims to facilitate the automatic exchange of information across borders, thereby combating tax evasion. The commitment, involving the U.K., Singapore, and Luxembourg among others, integrates the Organisation for Economic Co-operation and Development’s (OECD) newly finalized Crypto-Asset Reporting Framework (CARF) with the existing Common Reporting Standard (CRS).

The CARF, finalized in June after two years of negotiation, is a major step in ensuring tax compliance for crypto platforms. Until now, these platforms haven’t been required to share taxpayer information with tax authorities. The U.K. has taken a lead role in this initiative. A statement from the U.K. highlighted the significance of this global commitment, stressing its potential to combat offshore crypto tax evasion effectively.

Implementation of these standards is set for 2027, allowing time for the necessary legal and administrative preparations. Countries will work to incorporate the CARF into their domestic laws and establish the required exchange agreements. This timeframe is in line with updates to the CRS, facilitating a coordinated approach to information exchange.

However, several countries with significant crypto interests have not signed the agreement. Notable absentees include Turkey, India, China, Russia, and all African nations. The absence of these key players raises questions about the global reach and effectiveness of the initiative.

The joint statement openly invites other jurisdictions to join the agreement. This call to action aims to create a more robust, global system for automatic information exchange, leaving no safe haven for tax evaders.