G20’s Crypto and Foreign Asset Decisions: What You Need to Know

Date : 13/09/2023
Read: 3 mins

G20's decisions on crypto and foreign assets explained. Explore the implications for your investments and financial security in our comprehensive article.

G20 decided on crypto and foreign assets

Crypto and foreign assets are two of the most dynamic and disruptive forces in the global economy today. They offer new opportunities for innovation, investment and trade, but also pose significant challenges for regulation, taxation and security. How can the world’s leading economies balance these competing interests and ensure a fair and stable system for all? That was the question that the G20 leaders tackled at their recent summit in New Delhi, India. In this article, we will explore what they decided on crypto and foreign assets and what it means for you and the world.

Highlights:

G20 prioritises global tax system sustainability.
Global minimum corporate tax rate at 15%.
Information exchange on crypto assets.
Fast-tracking Crypto-Asset Reporting Framework.

Also Read: Don’t Miss Out on These Income Tax Rules If You Have Crypto Gains

Investors in cryptocurrency need to take note of the G20's groundbreaking decisions on tax transparency, as non-disclosure of crypto transactions could lead to significant financial setbacks. It's imperative to report your holdings and transactions, ensuring compliance with evolving regulations to safeguard your investments and avoid hefty penalties. Stay informed, stay compliant, and secure your crypto assets for the future.

Key Decisions made during G20

Some key decisions made in G20 with respect to crypto and foreign assets include the following:

The G20 leaders agreed to cooperate towards a globally sustainable, modern and fair international tax system.
They reaffirmed their commitment to the swift implementation of the ‘Two-Pillar’ international tax package.
Pillar One gives market jurisdictions the right to tax profits generated in their jurisdiction, even if the company is resident in another jurisdiction.
Pillar Two provides for the levy of a global minimum corporate tax rate of 15% on all such big MNCs.
The G20 countries recognise the need for coordinated efforts and additional support for developing countries to implement the international tax package effectively.
The G20 also called for the swift implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the ‘Common Reporting Standard’ (CRS).
G-20 leaders agreed to implement crypto asset reporting framework quickly, and many countries want to start information exchange on such assets by 2027.
CARF provides for the reporting of tax information on transactions in crypto assets in a standardised manner.
The amended CRS requires more tax transparency with respect to financial accounts held abroad.
The Global Forum report calls for a 'whole-of-government' approach to address illicit financial flows through information sharing.
The G20 has also taken note of the OECD report on enhancing international tax transparency on real estate and the Global Forum Report on facilitating the use of tax-treaty-exchanged information for non-tax purposes.