Singapore Commits to Implementation of Crypto-Asset Reporting Framework

On 27 November 2024, the Inland Revenue Authority of Singapore (“IRAS“) announced that Singapore had committed to the implementation of the Crypto-Asset Reporting Framework (“CARF“) as of 26 November 2024, along with 60 other jurisdictions.

The CARF was developed in light of the rapid growth of the crypto-asset market, and is targeted at preventing recent gains in global tax transparency from being gradually eroded. It comprises:

  1. the scope of crypto-assets to be covered;
  2. the entities and individuals subject to data collection and reporting requirements;
  3. the transactions subject to reporting as well as the information to be reported in respect of such transactions; and
  4. the due diligence procedures to identify crypto-asset users and the relevant tax jurisdictions for reporting and exchange purposes.

Singapore has signed the Multilateral Competent Authority Agreement on Automatic Exchange of Information pursuant to the Crypto-Asset Reporting Framework (“CARF MCAA“) and the Addendum to the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (“Addendum“). Together, the CARF MCAA and the Addendum:

  1. provide for the automatic exchange of tax relevant information on crypto-assets between the tax authorities of signatory jurisdictions. This avoids the need for agreements to be concluded on a bilateral basis.
  2. implement amendments to the Common Reporting Standard (“CRS“), such as the strengthening of due diligence and reporting requirements. As background, the CRS is an internationally agreed standard for the automatic exchange of financial account information. Among other matters, it sets out (i) the financial account information to be exchanged; (ii) the financial institutions (“FIs“), accounts and taxpayers covered; and (iii) the customer due diligence which FIs need to follow.
  3. incorporate internationally agreed standards on confidentiality and data safeguards. Moreover, as a framework agreement, the MCAA also ensures that each signatory’s standards on data protection, confidentiality and appropriate use of information always apply.

Singapore is one of the 52 jurisdictions relevant to the CARF in 2024, and is expected to commence exchanges under the CARF by 2027 or 2028 at the latest.

In collaboration with the industry, IRAS will provide guidance to assist reporting entities in meeting their reporting obligations.

Click on the following link for more information:


Disclaimer

Rajah & Tann Asia is a network of member firms with local legal practices in Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Our Asian network also includes our regional office in China as well as regional desks focused on Brunei, Japan and South Asia. Member firms are independently constituted and regulated in accordance with relevant local requirements.

The contents of this publication are owned by Rajah & Tann Asia together with each of its member firms and are subject to all relevant protection (including but not limited to copyright protection) under the laws of each of the countries where the member firm operates and, through international treaties, other countries. No part of this publication may be reproduced, licensed, sold, published, transmitted, modified, adapted, publicly displayed, broadcast (including storage in any medium by electronic means whether or not transiently for any purpose save as permitted herein) without the prior written permission of Rajah & Tann Asia or its respective member firms.

Please note also that whilst the information in this publication is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as legal advice or a substitute for specific professional advice for any particular course of action as such information may not suit your specific business and operational requirements. You should seek legal advice for your specific situation. In addition, the information in this publication does not create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on the information in this publication.

CONTACTS

Head, Tax and Private Client
Co-Head, South Asia Desk
+65 6232 0597
Singapore, South Asia,
Head, Financial Institutions Group
+65 6232 0456
Singapore,
Deputy Head, Financial Institutions Group
+65 6232 0482
Singapore,

Country

EXPERTISE

Share

Rajah & Tann Asia is a network of legal practices based in Asia.

Member firms are independently constituted and regulated in accordance with relevant local legal requirements. Services provided by a member firm are governed by the terms of engagement between the member firm and the client.

This website is solely intended to provide general information and does not provide any advice or create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on this website.

© 2024 Rajah & Tann Singapore LLP. All rights reserved. Rajah & Tann Singapore LLP (UEN T08LL0005E) is registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A) with limited liability.