A study of
cryptocurrency taxation regimes from around the world by the
Organization for Economic Co-operation and Development, or OECD, found
that global crypto taxation laws are highly inconsistent.

Source: OECD Report.

The
way crypto assets are defined vary greatly by jurisdiction.
Cryptocurrency is most commonly defined as a “financial instrument or
asset”, followed by a “commodity or virtual commodity." In the U.S., the
asset class remains mostly undefined for tax purposes.

Source: OECD Report.

The
same inconsistency is observed when it comes to determining the first
taxable event for mined cryptocurrency assets. The most common approach
here is to tax coins at creation, though some nations choose to tax the
first disposal of mined coins instead. Several jurisdictions employ
variable rules depending on the entity involved.

The report also noted that the inherent volatility of crypto assets presented additional challenges:

“A
high level of volatility makes valuation complex, although it is key
for the calculation of the overall capital and of capital gains, and
therefore, in establishing the tax consequences under income taxes”.

The report suggests that policymakers should take the environmental impact of various cryptocurrencies into consideration:

The
tax treatment of the electricity costs associated with mining and of
the proof-of-stake consensus mechanism, which requires considerably
lower electricity use can therefore affect environmental consequences,
particularly if the costs of pollution are not reflected in prices.

The
document urged policymakers around the world to bring greater clarity
to the taxation of crypto assets. Even in cases where the existing
framework is applied, it suggested crypto-specific guidelines “to
promote clarity and certainty for taxpayers." It also proposed
simplified taxation rules and exemptions for small trades or
transactions.

source link : https://cointelegraph.com/news/oecd-calls-out-countries-for-their-inconsistent-rules-on-crypto-taxation