Portugal and 47 other jurisdictions commit to automatically exchanging information on crypto-assets

48 jurisdictions, including Portugal, have announced their commitment to start automatically exchanging information on crypto-assets from 2027, in accordance with the international standard developed by the OECD – known by the acronym CARF (Crypto-Asset Reporting Framework).

This initiative is an important milestone in strengthening international cooperation to combat tax fraud and tax evasion on a global scale and will enable tax administrations to automatically have information on the income related to crypto-asset transactions obtained by taxpayers, thus responding to the challenges arising from the growing use of alternative means of payment and investment, thereby contributing to greater efficiency and tax fairness.

These jurisdictions have also announced that they will adopt, by 2027, the changes to the international standard for the automatic exchange of information on financial accounts, known as the CRS – Common Reporting Standard, which was agreed this year by the OECD.

It should be remembered that within the European Union, the Council recently adopted a Directive (DAC 8) amending Directive 2011/16/EU on administrative cooperation in the field of taxation. This new Directive provides, in particular, for the extension of the scope of the exchange of information, requiring cryptoasset service providers to communicate to EU member states information on transactions carried out through them, which will then be automatically exchanged between member states.

This new tool will undoubtedly be another very important mechanism for strengthening the fight against tax fraud and evasion in Portugal and for a fairer distribution of the tax burden.

You may find more information and the original text at https://info.portaldasfinancas.gov.pt/pt/destaques/Paginas/Joint_statement_carf_2023_11_10.aspx

This article is for informational purposes only and is not intended to be exhaustive in relation to the matters covered here and all requirements/applicable law and rules or exceptions, and it includes hypothetical situations in order for the client to better understand the taxation in any way it contains guidance or advise to any regime or particular situation. However, if you still need to be completely clear and continue with doubts, or if you want our help, feel free to contact us through geral@fslegal.pt.

Reviewed by Rodolfo José Santos

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