The OECD published a couple of reports on the tax treatment of virtual currencies and a tax report to the G20 Finance Ministers and central bank governors.
The first report deals with the tax treatment of virtual currencies analyses the approaches and policy gaps across the main tax types (income, consumption and property taxes) in more than 50 jurisdictions.
It also analyses the tax policy implications of various emerging issues related to the taxation of virtual currencies, including stablecoins and central bank digital currencies, and the evolution of the consensus mechanisms that maintain blockchain networks and the emergence of decentralised finance.
Finally, the report offers some key insights policymakers should consider to strengthen their legal and regulatory frameworks for taxing virtual currencies. Some of these considerations include:
- "Providing clear guidance and legislative frameworks for the tax treatment of crypto-assets and virtual currencies, including to ensure consistency with the treatment of other assets.
- "Supporting improved compliance, including through the consideration of simplified rules on valuation and on exemption thresholds for small trades.
- "Aligning the tax treatment of virtual currencies with other policy objectives or trends, including the decline of cash use and environmental policy objectives.
- "Designing appropriate guidance on the tax treatment of emerging technological areas, including stablecoins, central bank digital currencies, proof-of-stake and decentralised finance, for which existing frameworks may not be appropriate."
In the second report, by Secretary General Angel Gurría to the G20 Finance Ministers, the OECD said that it was progressing with work to "design a tax reporting framework that will ensure tax transparency with respect to cryptoassets, including the income derived from the sale of such assets".
The OECD added that it aims to present " a comprehensive implementation package" to the G20 next year.