2024

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Wednesday

Data Exchange

<a href="https://bitcoinworld.co.in/switzerland-launches-public-consultation-on-crypto-tax-information-sharing/" title="Switzerland Launches Public Consultation On Crypto Tax Information Sharing" rel="noopener noreferrer nofollow"></a>
Switzerland is contemplating including crypto tax data within its international information exchange protocols.
The Federal Council on Wednesday initiated a consultation process for a new bill. This bill aims to facilitate the sharing of crypto asset information with 111 jurisdictions.&nbsp;
These jurisdictions are currently part of the automatic information exchange. The sharing is subject to their compliance with the OECD’s Crypto-Asset Reporting <a href="https://www.oecd.org/en/topics/policy-issues/tax-transparency-and-international-co-operation.html" rel="noopener noreferrer nofollow">Framework</a>.
Switzerland has long led in cryptocurrency adoption. Locales like Lugano have pioneered accepting taxes in cryptocurrencies such as Tether (USDT) and Bitcoin (BTC).&nbsp;
The country’s political framework allows the Federal Tax Administration to classify Bitcoin as a payment method. As a result, Bitcoin is exempt from Value Added Tax (VAT).
The Federal Council aims to establish the commencement date for the automatic exchange of crypto-related information with its partner states. The consultation period for this legislative proposal will conclude on Nov. 15, 2024.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Switzerland is looking into which countries to partner with for the automatic exchange of cryptoasset information. For this the Federal Council has initiated a consultation procedure. The exchanges would begin in 2026. <a href="https://t.co/dd0gddJ8XW" rel="noopener noreferrer nofollow">https://t.co/dd0gddJ8XW</a> <a href="https://twitter.com/efd_dff?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@efd_dff</a> <a href="https://twitter.com/sif_sfi?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@sif_sfi</a>
 — Swiss Federal Government (@SwissGov) <a href="https://twitter.com/SwissGov/status/1823643797378453916?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 14, 2024</a>
</blockquote>
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<h3 id="span-style-font-weight-400-oecd-s-framework-offers-room-for-national-customization-span">OECD’s Framework Offers Room for National Customization</h3>
The OECD’s framework for crypto assets sets a uniform approach for tax authorities in managing and exchanging data on these assets. However, it also permits countries to tailor these standards to fit their own legal and regulatory contexts.
This adaptability enables countries to apply the guidelines in ways that suit their particular needs, while upholding a minimum standard of transparency and cooperation aimed at preventing tax evasion and improving compliance within the crypto sector.
<h3 id="span-style-font-weight-400-switzerland-s-federal-council-proposes-crypto-tax-data-exchange-with-111-countries-span">Switzerland’s Federal Council Proposes Crypto Tax Data Exchange with 111 Countries</h3>
In May 2024, Switzerland’s Federal Council opened a public consultation aimed at expanding the scope of the international automatic exchange of information (AEOI) to include cryptoassets, aligning with global standards set to be effective from January 1, 2026.&nbsp;
This move is part of a broader initiative to integrate the handling of digital assets, which rely on blockchain or similar technologies, into the existing tax transparency framework. The consultation period for this legislative proposal will last till Sept. 6, 2024.
The Federal Council’s current proposal outlines which of the 111 jurisdictions with active AEOI agreements with Switzerland will exchange cryptoasset information starting in 2026. It also considers which countries might adopt this exchange at a future date, provided they show interest and meet the OECD’s Crypto-Asset Reporting Framework criteria.
Before implementing the automatic exchange of cryptoasset data, the Federal Council will assess whether partner states still comply with the required standards. This evaluation will extend to include cryptoassets, necessitating a full revision of the 2017 federal decree.

Switzerland Launches Public Consultation On Crypto Tax Information Sharing

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