Cryptocurrency Tax: OECD's 2021 Cryptocurrency Reporting Framework

Cryptocurrency Reporting Requirements: OECD to Release Cryptocurrency Reporting Framework in 2021

The Organisation for Economic Co-operation and Development ("OECD") is due to release a recommended policy framework for cryptocurrency reporting standards in the upcoming months. Currently, there is little cohesion or transparency among the treatment of cryptocurrencies across countries. Reporting requirements and tax treatment of cryptocurrencies vary significantly across jurisdictions. In Canada cryptocurrencies are typically treated as commodities for tax purposes. This means that income from cryptocurrency transactions in Canada may be classified as business income or capital gains depending on the level of activity with the cryptocurrency. In other jurisdictions, cryptocurrencies are treated as securities or intangible assets. Furthermore, in other jurisdictions such as Denmark, Italy, and Costa Rica tax authorities have not remitted any guidance on