The 18th G20 summit recently concluded in New Delhi, India. The group of the world’s 20 leading economies met from Sept. 9–10 to discuss several shared concerns and plans. This time, however, crypto transactions and regulations were also one of the G20’s discussed topics. As per the declaration, the group aimed to implement its Crypto Asset Reporting Framework (CARF) by 2027.
The declaration also noted that the members are working towards a “modern international tax system appropriate to the needs of the 21st century.” The members have also called for the quick implementation of the CARF rules, i.e., within a span of four years. According to the document,
“We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum) to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions, noting the aspiration of a significant number of these jurisdictions to start CARF exchanges by 2027 and to report to our future meetings on the progress of its work.”
Apart from the crypto regulations, the G20 nations have also put forward amendments to the Organisation for Economic Co-operation and Development (OECD) common reporting standards.
What does the G20 crypto tax rule look like?
As per the OECD, CARF is a “dedicated global tax transparency framework.” Moreover, CARF will automate the yearly exchange of tax data with regard to the crypto industry within proper tax residency.
Indian Finance Minister Nirmala Sitharaman, previously said that the country would use its G20 presidency to push for crypto regulations. However, this goal seems unfulfilled, even though the CARF is a move in that direction. Although crypto is not banned in India, the government has levied heavy taxes to discourage participation.