The OECD announced on 2 October 2024 the release of an XML schema and user guide to facilitate the exchange of information between tax authorities under the Crypto-Asset Reporting Framework (CARF).
The OECD also unveiled an updated XML schema and user guide to enhance information transmission between tax authorities under the amended Common Reporting Standard (CRS).
While the XML schema has been primarily designed to facilitate the exchanges of CARF information between tax administrations, the XML schema can also be used for domestic reporting of CARF information by Reporting Crypto-Asset Service Providers, to the extent permitted under domestic law of the relevant jurisdiction.
The CARF XML Schema and User Guide and the CRS XML Schema and User Guide reflect the reporting requirements of the CARF and the amended CRS that were approved by the OECD in 2023 and subsequently endorsed by the G20 and the Global Forum as international standards. First exchanges under both the CARF and the amended CRS are expected to commence in 2027.
While the XML Schemas and User Guides are primarily designed to support the automatic exchange of information between tax authorities, jurisdictions can also mandate the use of the XML Schemas for domestic reporting by Reporting Crypto-Asset Service Providers and Reporting Financial Institutions, respectively.
The OECD also issued the first set of frequently asked questions (FAQs) to provide interpretative guidance on the CARF today. These FAQs help to ensure consistency in the implementation of the CARF. In particular, the guidance clarifies that, as a general matter, providers of non-custodial services in respect of Crypto-Assets, including in a decentralised manner, can meet the definition of Reporting Crypto-Asset Service Provider.
Given the interest expressed by both governments and businesses, work on further and more detailed guidance is underway on relevant aspects surrounding the application of the CARF to non-custodial and decentralised services.