Liechtenstein joins crypto tax declaration

13 November 2023 09:42

Liechtenstein BankersLiechtenstein

Vaduz - The Liechtenstein government is supporting the revised OECD standard on the exchange of information in tax matters. This now also includes a framework for the reporting of assets in cryptocurrencies.

Liechtenstein has joined almost 50 other countries in signing a joint statement. With this political declaration of intent, the countries commit to implementing the revised framework for the automatic exchange of tax-related information (AEOI), according to a statement. With the Crypto Asset Reporting Framework (CARF), the Common Reporting Standard (CRS) for the exchange in tax matters now also includes a framework for the reporting of assets in cryptocurrencies. It will apply from 1 January 2026.

As the financial markets and the services and products offered have continued to evolve, the relevant working group at the Organization for Economic Cooperation and Development (OECD) revised the CRS, which was adopted on behalf of the G20 in 2014 and has been applied since 2016. The revision also took into account digital developments, as well as increased due diligence and reporting requirements.

On 17 October 2023, the Council of the EU adopted a directive to promote cooperation between national tax authorities (DAC 8). Among others, this directive determined the implementation of the CARF and the CRS revision. According to the statement, Liechtenstein “has an interest in globally applicable rules and their simultaneous implementation by a large number of states, in particular comparable jurisdictions with financial centers, which ultimately generates legal certainty”. ce/mm

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