According to the Federal Council, Switzerland does not need to change its current tax regulations to cover blockchain and DLT-based solutions.
Swiss tax law has “worked out” with regard to blockchain technology
At its meeting on June 19, the Federal Council addressed the need to change Swiss tax law as regards the blockchain industry. According to an official statement, existing regulations, including taxes on income, profit, property, capital gains, as well as VAT, have “proven” in block chain technology and DLT.
“Therefore, no legislative action is necessary to introduce new provisions that would apply to new financial instruments.”
– wrote the Federal Council. In addition, the authority recommended not to extend the scope of taxes on income from equity and equity tokens.
The Swiss Federal Council devotes a lot of attention to blockchain technology
The latest decision of the Federal Council is a consequence of calling this body in 2018 to assess the need for changes in Swiss tax law. In December 2018, the office He statedthat Swiss tax regulations are appropriate for new technologies such as blockchain.
The Swiss Federal Council – the country’s executive body – devotes a lot of attention to the development of blockchain, initiating many actions that are aimed at increasing the legal security of this industry. In March 2019, it began consultations on adapting federal law to the development of the block chain. In November 2019, she called for a better blockchain regulatory framework.
Switzerland has become one of the friendliest countries in terms of cryptocurrency law. It is often referred to as the “crypto nation”. The main cryptocurrency practices, such as trade and mining, are taxed in Switzerland. Therefore, natural persons receiving remuneration in digital assets must declare their assets and pay income tax.
What else is going on in Switzerland?
Last year, the Swiss National Bank (SNB), in cooperation with the Bank for International Settlements (BIS), signed an operational agreement regarding the BIS Innovation Hub Center. As part of this agreement, banks plan to implement two research projects: the first focuses on the integration of central bank digital money, and the second deals with increasing the requirements for central banks in the field of effective monitoring of rapidly developing electronic markets.