OECD urges countries to finalize the principles of taxation of crypto assets

OECD urges countries to finalize the principles of taxation of crypto assets

The Organization for Economic Co-operation and Development (OECD) believes that in most countries, the principles of taxation of cryptocurrencies are inconsistent and differ greatly depending on the jurisdiction.

The report provides a number of examples, including various definitions of digital assets in regulatory frameworks. Most often, cryptocurrencies are classified as financial instruments or assets, in other cases they are classified as goods, currencies or means of payment. In some countries, including the United States, they remain an uncertain asset class from a tax point of view.

The situation is similar with the calculation of the cost of cryptoassets mined through mining. Most often they are based on the rate at the time they were created, but in some jurisdictions, income from the first sale is taxed. Several countries may even combine different rules depending on the subject in question. At the same time, high volatility additionally complicates the assessment of the total capital amount.

In the document, the OECD calls on the governments of all countries to clarify the mechanisms for taxing cryptocurrencies, proposes to provide benefits to PoS miners due to the consumption of less electricity, and also to simplify the system or not take into account small transactions and transactions at all.

While officials are studying these proposals, G20 members have already begun work to formalize the rules of control and rules for the circulation of digital currencies of central banks.

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OECD urges countries to finalize the principles of taxation of crypto assets

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