Earlier this month, 47 countries, including France, signed an agreement on cryptocurrency taxation: the CARF standard. What can we learn from these new rules aimed at combating tax evasion?
CARF: the new international standard for crypto taxation
On November 10, 47 countries signed an agreement on cryptocurrency taxation: the Crypto-Asset Reporting Framework (CARF) standard. The aim of this standard is to enable the tax authorities of each signatory country to find out about the cryptocurrency activities of its taxpayers abroad.
To better understand what this involved, the crypto tax specialists at Waltio published an explanatory thread:
47 international countries, including France, are adopting the CARF standard.
The French tax authorities will be automatically informed of your crypto activities carried out outside its borders pic.twitter.com/XgIgxpnx2C
– Waltio (@Get_Waltio) November 24, 2023
In France, this new standard is known as the Norme Commune de Déclaration (NCD), and its primary objective is to combat tax evasion.
The changes brought about by this new standard
Before CARF, it could thus be easier for a French taxpayer to go through a platform based in another jurisdiction to convert his cryptocurrencies into fiat currency and thus attempt to evade the taxes due.
In this case, Waltio takes the example of the American platforms Coinbase and Kraken, which will automatically provide the necessary information to the French tax authorities. This will enable public finance staff to match this information with taxpayers’ tax returns to ensure that there are no irregularities.
The CARF standard is thus similar to the European DAC-8, but this time on an international level. Thus, platforms will be required to provide the following information about their users to the competent authorities:
- Name ;
- First name;
- Address ;
- Tax number ;
- Date of birth.
As explained above, France and the United States are among the 47 countries that have signed the CAF standard. This includes a varied list of countries such as Brazil, Germany, Singapore and Switzerland:
The list of countries
Armenia; Australia; Austria, South Africa
Barbados; Belgium; Belize; Brazil; Bulgaria
Canada; Chile; Croatia; Cyprus
Czech Republic; Denmark ;
Estonia; Finland
France ; Germany ; Greece ; Hungary
Iceland; Ireland; Italy;…– Waltio (@Get_Waltio) November 24, 2023
