In the context of taxation, globalization and digitalization create challenges for tax authorities and require an appropriate legal framework to ensure fair and efficient tax collection. The doctrine of country sovereignty limits the application of internal tax rules and the collection of tax information outside borders, especially in relation to countries that have commercialized their sovereignty through the creation of tax havens, while the presence of multinational companies in different countries enables the planning of tax strategies aimed at avoiding tax liability. In order to respond to the aforementioned challenges, the international community developed mechanisms of administrative cooperation between countries, among which the automatic exchange of tax-relevant information is particularly important. Automatic exchange of tax-relevant information means the systematic delivery of predetermined information to other countries, about the residents of those countries, without prior request and at predetermined regular intervals. This mechanism enables tax authorities to access data on the accounts and assets of their residents, taxpayers who receive income in other countries, which achieves tax transparency and reduces the scope for tax evasion and avoidance of tax liability. The foundations of today's legal framework were laid within the League of Nations, and the further development of this institute at the international level was undertaken by the Organization for Economic Cooperation and Development (OECD). The global standard for automatic information exchange was adopted in 2014, and consists of the Model Competent Authority Agreement (CAA) and the Common Reporting Standard (CRS). The global forum within the OECD is continuously working on improvements to the Global standard, and the latest addition includes guidance in the Crypto Asset Reporting Framework. (Crypto-Asset Reporting Framework, CARF). At the EU level, the development of the legal framework for the automatic exchange of information is not only an essential tool for combating tax evasion and tax avoidance, but is also necessary for the proper functioning of the common, single EU market. The Directive on Administrative Cooperation (2011/16/EU) established a gradual approach to the expansion of the automatic exchange of information through regular amendments in order to include as much tax-relevant information as possible. As an EU member state, the Republic of Croatia regularly implements all European regulations in its legislation and participates in international initiatives, it was among the early adopters of the Global Standard. The automatic exchange of information is an important tool for ensuring a fair global tax system.