Singapore Joins Global Efforts to Improve Tax Transparency and Combat Evasion in the Crypto Sector
On November 10, 2023, the Inland Revenue Authority of Singapore (IRAS), along with 47 other jurisdictions, including major economies such as the US, UK, and Australia, committed to implementing the Crypto-Asset Reporting Framework (CARF) by 2027. This framework, which was agreed upon internationally in June 2023, will facilitate the automatic exchange of tax-relevant information on crypto assets, helping to ensure that the recent global gains in tax transparency are maintained.
In a joint statement, the group emphasized that the widespread and consistent implementation of CARF would improve tax compliance efforts and help clamp down on tax evasion, which has a negative impact on public revenues. By enabling seamless information exchange, the framework aims to strengthen the global system for tax transparency, leaving no room for tax avoidance.
As a leading global financial hub, Singapore’s endorsement of CARF underscores its commitment to international tax transparency and aligns with its efforts to foster a stable and reliable business environment. The IRAS also stated that it will collaborate with the crypto industry to provide guidance for the CARF’s implementation in Singapore, ensuring its effective adoption.
By joining this collective engagement, Singapore reinforces its role as a responsible financial center in the global economy, addressing the growing importance of cryptocurrency regulations and their impact on the broader financial landscape.
