UN releases practical checklist for tax authorities on crypto transactions
The United Nations has published a 130-page practical checklist outlining key questions tax authorities should consider when auditing cryptocurrency transactions. This initiative aims to standardize procedures and enhance transparency in the taxation of digital assets.
Source UN
The document explains how to classify crypto-related losses and whether these can be deducted for tax purposes. It also addresses complex aspects related to DeFi, stablecoins, and derivatives, where legal frameworks remain unclear.
Additionally, the checklist details the international information exchange mechanism under CARF, launching in 2027, with 48 countries already signing agreements. It clearly defines the boundaries between “illegal transactions” and “taxable income.”
The UN’s effort is designed to promote global coordination in tax regulation by creating standards and guidance for member states. This checklist will assist tax authorities in effectively analyzing and regulating the crypto market.
Overall, the new UN document may become a crucial tool in combating tax evasion and establishing transparent rules for crypto market participants. This development could boost investor confidence and improve oversight of digital assets in the future.
