Moores Rowland

Singapore Strengthens Tax Transparency with Crypto-Asset Reporting Framework

Singapore is enhancing its international tax cooperation by adopting the Crypto-Asset Reporting Framework (CARF) developed by the OECD. This framework facilitates the automatic exchange of tax-related information on crypto assets between jurisdictions. From 1 January 2025, Singapore-based intermediaries, including exchanges and wallet providers, will be required to report transactions involving crypto assets. This move aligns with global efforts to address tax transparency and combat tax evasion in the rapidly growing crypto ecosystem.

December 2024

A striking image capturing the modern skyline of Singapore with high-rise buildings and urban landscapes.

Singapore Enhances International Tax Cooperation through Automatic Exchange of Information on Crypto-Assets.

Singapore has taken a significant step in enhancing international tax cooperation by committing to the implementation of the Crypto-Asset Reporting Framework (CARF), an initiative developed by the Organisation for Economic Co-operation and Development (OECD). This framework aims to address the challenges posed by the rapid growth of the crypto-asset market, ensuring that global tax transparency efforts remain effective.

Key Highlights:

  1. Implementation Timeline:
    Singapore, along with 47 other jurisdictions, aims to begin the automatic exchange of crypto-asset reporting under CARF by 2027. This timeline allows countries to align their regulatory frameworks and ensure seamless implementation.

  2. Scope of the Framework:
    The CARF introduces robust mechanisms for the automatic exchange of tax-relevant information concerning crypto-assets. These include cryptocurrencies, stablecoins, and non-fungible tokens (NFTs). It requires Crypto-Asset Service Providers (CASPs) to collect and report detailed information such as users’ tax residences and taxpayer identification numbers.

  3. Global Alignment:
    By adopting CARF, Singapore aligns itself with internationally agreed standards for the Exchange of Information (EOI) on tax transparency. As a member of the Global Forum on Transparency and Exchange of Information for Tax Purposes, Singapore reinforces its commitment to fostering a cooperative and transparent global tax environment.

  4. Collaboration with Stakeholders:
    The Inland Revenue Authority of Singapore (IRAS) will engage industry stakeholders to ensure a smooth transition to the new reporting framework. Guidance and support will be provided to help Crypto-Asset Service Providers comply with the reporting requirements.

Significance of the Move:

The implementation of CARF underscores Singapore’s dedication to maintaining its reputation as a trusted and responsible global financial center. By embracing this framework, the nation aims to close potential tax loopholes in the crypto-asset space, ensuring fairness and compliance in the global tax ecosystem.

Singapore’s proactive approach not only strengthens its domestic regulatory landscape but also contributes to the global effort in addressing tax challenges arising from the digital economy.