Switzerland extends tax transparency to cryptocurrencies!

Switzerland extends tax transparency to cryptocurrencies!

Switzerland is preparing for a comprehensive reform in the area of ​​tax transparency, particularly with regard to cryptocurrencies. From 2026, these will be included in the automatic exchange of information (AEOI), which represents a significant step in the fight against tax evasion. [SRF] reports that Switzerland has been participating in the AEOI since 2017 and now, based on OECD standards, wants to adapt the regulations to enable the exchange of information about crypto assets.

The Council of States has approved a proposal from the Federal Council to expand the AEOI. From 2027, 74 partner states, including all EU member states, Great Britain and most of the G20 countries, will be included in the exchange. However, the USA, China and Saudi Arabia remain excluded from this project, while a bilateral agreement with the USA is planned.

Development and approval in the Council of States

The overall vote in the Council of States resulted in 32 yes votes, 7 no votes and 1 abstention. The revision is based on a new OECD reporting framework that aims to close gaps in the tax transparency framework and ensure equal treatment between traditional assets and cryptocurrencies. Finance Minister Karin Keller-Sutter emphasizes how important this measure is for the credibility of the Swiss financial center.

As part of the reform, banks that offer crypto instruments will have to document data in accordance with OECD requirements from 2026. For foreign customers, this data must be reported to the Federal Tax Administration. In addition, cryptocurrencies in Switzerland must be shown as “other assets” in the tax return. Around 11% of the Swiss population holds cryptocurrencies, although only a small proportion actively trades larger amounts.

Reactions and critical voices

While the majority of the Council of States approved the proposal, there were also critical voices. A minority requested that the proposals not be adopted, but were clearly defeated by 33 votes to 9 and a further 29 to 9 with one abstention. Critics fear that the legal measures could endanger Switzerland's attractiveness as a location. In addition, the Council of States rejected the introduction of new penalties for negligent violation of the duty of care, reporting and information.

The rapid implementation of the AIA is seen as an advantage in actively shaping the framework conditions together with the crypto community. The National Council will now also deal with the proposal, with entry into force planned for January 1, 2026. [Nau] emphasizes that this reform not only ensures tax transparency, but is also intended to make the legal situation for cryptocurrencies clearer.