OECD prepares model Bitcoin tax that could be used worldwide

The proposal will be presented in 2021 and will serve as an example for each country to create its own rate

OECD prepares model Bitcoin tax that could be used worldwideNOTISES

A tax model for investment related to Bitcoin is to Immediate Bitcoin review be proposed in 2021 by the Organisation for Economic Cooperation and Development (OECD).

According to the proposal in the OECD Secretary-General’s „Report on taxes for G20 Finance Ministers and Central Bank Presidents – October 2020“ released by the organisation recently, there is concern about the growth of the cryptomime market, which „has recently reached US$354 billion“.

„Cryptographic assets, and within them virtual currencies, are developing rapidly. The overall market capitalization of virtual currencies reached $354 billion in September 2020.

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In this way, the OECD intends to present a new form of taxation that will support countries in creating fees for transactions and investments involving Bitcoin.

Bitcoin Tax
The market for cryptomorphs is expected to have a universal taxation model in the near future, which will serve as a guide for the development of local taxes. Thus, in addition to Brazil, other G20 countries may join the tax proposal being developed by the OECD.

Before it was introduced in 2021, forms of cryptomorphism taxation were requested in 2018 by G20 countries and central bank authorities around the world.

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According to the report, there is concern about the impact of the cryptomorph market on the global financial system, and a proposal for a „Bitcoin tax“.

„Governors called on international organisations to analyse the risks presented in various policy areas – including taxation – in their March and July 2018 communiqués.

Regulation for cryptomorphs
Besides mentioning the creation of a tax model for the sector, the OECD report also talks about the regulation of the Bitcoin market. As in most countries, in the case of Brazil, for example, there is no legislation passed specifically for cryptomorphs.

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Thus, for the OECD, initiatives related to the regulation of cryptomorphs are still underway around the world. On the other hand, the organization has also outlined concerns about criminal practices such as tax evasion and money laundering.

„Regulators are still in the early stages of considering virtual currencies“.

The October 2020 OECD report provides information on how VOCID-19 impacted the global economy in the year, as well as talking about the creation of a tax for Bitcoin.

Although it is expected to be presented in 2021, the Bitcoin tax model developed by the OECD has not yet been formally presented by the organisation, and so it is not possible to scale up how the cryptomime market might be taxed through the intergovernmental organisation’s guidelines.