Canada is aiming to have the OECD standard for crypto asset tax reporting in place by 2027, as agreed with 46 other countries.
According to a supplement to the 2024 annual budget, Canada expects to apply the international Crypto-Asset Reporting Framework (CARF) for taxation by 2026. The country is getting an early start on the new standard, which is expected to be observed by 47 countries by 2027.
The CARF would impose new reporting requirements on crypto asset service providers (CASPs), such as cryptocurrency exchanges, crypto-asset brokers and dealers and crypto-asset automated teller machine operators, whether they are individuals or business entities. The supplemental report listed “stablecoins, derivatives issued in the form of a crypto-asset, and certain nonfungible tokens” as examples of crypto assets.
CASPs would be required to report to the Canada Revenue Agency (CRA) transactions between crypto assets and fiat and crypto assets for other crypto assets. Crypto asset transfers carried out by CASPs, including payment processing, when the value exceeds $50,000 United States dollars, would also need to be reported. In addition: