47 Countries Have Reached An Agreement On Cryptocurrency Taxation.

Turkey is not part of the international consortium established for the taxation of crypto transactions. This indicates that Turkey has not yet played an active role in global regulations regarding the taxation of crypto assets. While other countries collaborate on this matter, Turkey seems to be taking an independent approach in determining its stance on crypto taxation.

As of November 10th, fewer than 50 governments have committed to swiftly incorporating the new international standard, the Crypto Asset Reporting Framework (CARF), for automatic information exchange between tax authorities into their domestic legal systems.

The Organisation for Economic Co-operation and Development (OECD) published CARF in 2022, further developed with a directive from the G20 in April 2021. CARF mandates the reporting of crypto and digital asset transactions with intermediaries or service providers.

Those involved in drafting CARF hope that international information exchange between countries will commence by 2027. The text continues:

"The widespread and consistent application of CARF, if implemented in a timely manner, will enhance our ability to improve tax compliance and prevent tax evasion."

Among the countries committing to CARF are some of the OECD's 38 member countries and certain offshore financial centers, including the overseas territories of the United Kingdom such as the Cayman Islands and Gibraltar. Notably, major markets like China, Hong Kong, the United Arab Emirates, Russia, and Turkey are absent from this commitment due to their non-European focus. Moreover, no African countries are part of this commitment, with only two Latin American countries (Chile and Brazil) included.

CARF is not the sole international tax information exchange protocol for detecting crypto income. In October, the European Union Council formally accepted the eighth file of the Administrative Cooperation Directive (DAC8), a crypto tax reporting rule. DAC8 aims to empower tax authorities to monitor and assess every crypto transaction carried out by individuals or entities in other EU member countries.