Norway has recently signed a joint statement of intent with 47 countries to implement the OECD’s new Crypto-Asset Reporting Framework (CARF), which establishes a standard for the reporting and automatic exchange of information relating to crypto-assets. The participating countries aim to carry out the first exchange of information in 2027.
Promoting greater transparency and disclosure
The statement of intent signals the participating countries’ commitment to enhancing transparency by adopting the CARF standard, implementing the relevant rules in their domestic legislation, and commencing the exchange of information as early as possible.
The signing of the statement is regarded as an important step in efforts to uncover undisclosed income and assets held abroad.
The multilateral agreement for the implementation of CARF is expected to be opened for signature during 2024.
Under the framework, the Norwegian tax authorities will receive information concerning transactions in crypto-assets undertaken by Norwegian taxpayers through foreign crypto-asset exchange and service providers.
Correspondingly, Norwegian crypto-asset service providers will be required to report information to the Norwegian tax authorities concerning individuals, companies, and other entities that are tax resident abroad. This information will then be exchanged with the tax authorities in the jurisdiction where the taxpayer is resident.
The framework is largely based on the same principles and reporting mechanisms as the Common Reporting Standard (CRS). Its purpose is to ensure that the effectiveness of CRS is not undermined by the transfer of assets from traditional financial instruments into crypto-assets.
Source: The Ministry of Finance
Atle Melø
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