International Tax Law comprises the rules and agreements that govern how different countries tax income, profits, and assets that cross national borders. Its purpose is to prevent double taxation and combat tax evasion by coordinating tax policies among sovereign states. In the context of digital assets, International Tax Law addresses how cryptoasset transactions, holdings, and gains are treated when participants or assets are located in multiple jurisdictions. This field of law seeks to establish clarity and consistency in cross-border digital asset taxation.
Context
The application of International Tax Law to digital assets presents considerable complexities due to the borderless nature of cryptocurrencies and blockchain technology. Current discussions focus on the development and adoption of global reporting standards, such as the Cryptoasset Reporting Framework (CARF), to ensure consistent tax treatment worldwide. A key debate involves resolving jurisdictional ambiguities and establishing clear tax residency rules for digital asset activities. Future developments will likely involve increased cooperation among tax authorities and the creation of more harmonized international frameworks to address the unique challenges of taxing the digital economy.
The UK's CARF adoption operationalizes a global tax transparency standard, requiring RCASPs to integrate new due diligence and transactional reporting modules by the start of 2026.
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