OECD Proposal on Taxing Virtual Currencies

Cryp­to-assets, and vir­tu­al cur­ren­ci­es in par­ti­cu­lar, are in rapid deve­lop­ment and tax poli­cy­ma­kers are still at an ear­ly sta­ge in con­s­i­de­ring their impli­ca­ti­ons. G20 Lea­ders and Finan­ce Minis­ters have cal­led inter­na­tio­nal orga­ni­sa­ti­ons to ana­ly­se the risks posed by cryp­to-assets. So far, the tax poli­cy and eva­si­on impli­ca­ti­ons have been lar­ge­ly unex­plo­red, alt­hough for­ming an important aspect of the over­all regu­la­to­ry frame­work.

Pre­pa­red with the par­ti­ci­pa­ti­on of over 50 juris­dic­tions, Taxing Vir­tu­al Cur­ren­ci­es is the first com­pre­hen­si­ve ana­ly­sis of the approa­ches and poli­cy gaps across the main tax types (inco­me, con­sump­ti­on and pro­per­ty taxes) for such a lar­ge group of coun­tries. This report also con­s­i­ders the tax impli­ca­ti­ons of a num­ber of emer­ging issu­es, inclu­ding the gro­wing inte­rest in sta­ble­co­ins and ‘cen­tral bank digi­tal cur­ren­ci­es’; as well the evo­lu­ti­on of the con­sen­sus mecha­nisms used to main­tain block­chain net­works and the dawn of decen­tra­li­sed finan­ce.

This report was pre­pa­red for pre­sen­ta­ti­on to the Octo­ber 2020 mee­ting of G20 Finan­ce Minis­ters and Cen­tral Bank Gover­nors. It pro­vi­des key insights and a num­ber of con­s­i­de­ra­ti­ons to help poli­cy­ma­kers wis­hing to impro­ve their tax poli­cy frame­works for vir­tu­al cur­ren­ci­es.

»> see full report here