The Crypto-Asset Reporting Framework (CARF) is a key component of the International Standards for Automatic Exchange of Information in Tax Matters developed by OECD (Organisation for Economic Co-operation and Development) under a G20 mandate. It provides for the automatic exchange of tax-relevant information on crypto-assets and comes against the backdrop of the rapid adoption of the use of crypto-assets for a wide range of investment and financial uses.
WHO: A Reporting Crypto-Asset Service Provider in [Jurisdiction] must comply with the reporting and due diligence requirements if they are:
- An entity or individual tax resident in [Jurisdiction];
- An entity incorporated or organised under [Jurisdiction] laws, with legal personality or tax filing obligations in [Jurisdiction];
- An entity managed from [Jurisdiction];
- An entity or individual with a regular place of business in [Jurisdiction].
WHAT: Three types of Relevant Transactions are reportable under CARF:
- Exchanges between Relevant Crypto-Assets and Fiat Currencies;
- Exchanges between one or more forms of Relevant Crypto-Assets; and
- Transfers (including Reportable Retail Payment Transactions) of Relevant Crypto-Assets.
WHEN: By 2027.
WHERE: 58 jurisdictions including Singapore, Australia, United States, Malta, UK and Estonia have agreed to implement CARF.
HOW: An electronic format (XML schema) will be used to report CARF information to tax administrations for purposes of exchanging the CARF information.
https://ca-lab.isca.org.sg/technicalities/crypto-asset-reporting-framework-carf/
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