Switzerland will implement the reporting framework for crypto assets into law from 2025, but postpone automatic cross-border sharing of crypto tax data until at least 2027.
Summary
- Swiss authorities will incorporate the reporting framework for crypto assets into national law on January 1, but will delay practical implementation by at least a year.
- The delay comes amid suspended talks over which partner states will receive Swiss crypto account data, even though 75 countries have committed to rolling out the framework.
- The US is considering joining through an IRS proposal, while non-signatories such as Argentina, El Salvador, Vietnam and India remain outside the agreement.
Switzerland has postponed the implementation of rules allowing automatic sharing of cryptocurrency account data with foreign tax authorities until at least 2027, despite the regulatory framework formally coming into effect on January 1, government announcements show.
Switzerland will implement crypto framework
The Swiss Federal Council and the State Secretariat for International Financial Affairs announced on November 26 that the Crypto-Asset Reporting Framework rules will be incorporated into national law from January 1, but the practical application will be postponed for at least a year.
The postponement follows suspended talks on partner countries with which Switzerland wants to share data under the framework, according to the announcement. The Swiss government’s tax commission has halted negotiations on selecting states to initiate information sharing.
The Organization for Economic Co-operation and Development adopted the framework in 2022 as part of a global initiative to combat tax evasion through information sharing. The framework aims to allow partner governments to share data about their citizens’ cryptocurrency accounts.
The Swiss government’s announcement also details changes to local cryptocurrency tax reporting regulations, along with transitional provisions intended to ease compliance for domestic cryptocurrency companies.
According to OECD documents, 75 countries, including Switzerland, have committed to implementing the framework over the next two to four years. Countries that have not signed the agreement include Argentina, El Salvador, Vietnam and India.
The White House recently reviewed a proposal from the Internal Revenue Service to join the framework as part of an initiative to impose stricter reporting requirements on cryptocurrency capital gains for U.S. taxpayers using foreign currencies, reports show.
