Digitalization 'offers new challenges'

Digitalization of the economy, especially in terms of crypto-assets, could bring new challenges including tax evasion and money laundering, warned senior Chinese officials.

The fast development of the digital economy might impact the existing international tax system, and the short-term tax incentives could restrain its long-term development, said Zhu Guangyao, China's vice-minister of finance, at the two-day G20 meeting since Monday, when finance ministers and central bank governors gathered in Buenos Aires, Argentina.

"G20 countries should enhance cooperation on taxing digital economy and seek a consensus-based solution by 2020," suggested Zhu, who also mentioned that digitalization of the economy should raise issues with respect to tax evasion and money laundering.