site.btaBulgaria Joins Crypto-Asset Reporting Pledge

The Council of Ministers Wednesday adopted a decision approving Bulgaria's joining a statement concerning a collective commitment to implement the Crypto-Asset Reporting Framework (CARF) and Amendments to the Common Reporting Standard.

The document was developed by the Organization for Economic Co-operation and Development (OECD) and approved on August 26, 2022. It aims to increase tax transparency regarding crypto assets and to improve administrative cooperation through information exchange between competent authorities. This is a political, not a legally binding, commitment to uphold international rules on the provision and exchange of information on crypto assets developed by the OECD.

Similar rules are regulated at the European Union level by Council Directive (EU) 2023/2226 of October 17, 2023 amending Directive 2011/16/EU on administrative cooperation in the field of taxation, which Bulgaria should implement in its national legislation by December 31, 2025.

In September 2023, several countries, including EU ones, took the initiative to publish a joint statement expressing the intention of jurisdictions around the world to implement the new international rules. Bulgaria is among those invited to join the initiative.

A considerable number of jurisdictions – members of the EU, OECD, the Global Forum on Transparency and Exchange of Information for Tax Purposes, and the G20 – are expected to support the joint statement by publishing it on their websites on November 10, 2023. Wednesday’s decision of the Council of Ministers tasked the Bulgarian Finance Minister with publishing the statement.

Bulgaria's support for the joint statement is indicative of this country’s commitment to the OECD's activities and consistent efforts to become a full-fledged member. The implementation of the rules on the provision and exchange of information on crypto assets is one of the criteria concerning taxation against which the OECD will assess the country's readiness for membership.