The Organization for Economic Co-operation and Development (OECD), a global intergovernmental body, has called for agreement on new frameworks for the taxation of emerging technologies such as cryptocurrency.
In a report sent to financial ministers and central bank regulators of the G20 member countries on Tuesday, the OECD said it is looking to develop practical tools and build cooperation in “examining tax consequences of new technologies,” such as cryptocurrencies and distributed ledger technology.
The new effort, the organization said, will start immediately as part of a wider Inclusive Framework that the OECD is developing. The framework will receive another update in 2019, before being introduced by 2020, the OECD said.
The OECD, which primarily works towards stimulating economic development across regions, acknowledged that new technologies like blockchain brings significant technological advantages, yet they also bring uncertainty around tax liabilities – an area which the agency seeks to address via standardization in its framework.
“Technologies like blockchain give rise to both new, secure methods of record-keeping while also facilitating cryptocurrencies which pose risks to the gains made on tax transparency in the last decade,” the report argued.
The area of cryptocurrency taxation is somewhat contentious topic across diffeent regions.
While there’s currently no global standard in defining whether gains from cryptocurrency trading are subject to tax, several countries, such as the U.S. and Japan, have already started applying existing tax laws to the nascent technology.