Financial Services Tax in Tax and Legal blog
Join us on 5 December 2024 in Zurich for an event on the Crypto-Asset Reporting Framework (CARF)
As the adoption of crypto assets continues to grow, the need for clear and standardized tax regulations has become essential. As of 1 January 2026, the Crypto-Asset Reporting Framework (CARF), the new information exchange regime focusing on crypto transactions, will come into force. CARF aims to enhance transparency and compliance surrounding the taxation of crypto assets by clarifying the responsibilities of different service providers involved in crypto-related transactions.
Are you ready to comply with the Swiss implementation of the crypto information exchange standard CARF?
As one of the first countries, Switzerland published its draft legislation for the domestic implementation of the OECD’s Crypto-Asset Reporting Framework (CARF). In particular, on 15 May 2024, the Swiss authorities launched a combined consultation on CARF and the amendments to the Common Reporting Standard (CRS 2.0), proposing respective additions and amendments to the Automatic Exchange of Information (AEI) Act and Ordinance. The consultation runs until 6 September 2024, and new and amended rules are anticipated to come into force on 1 January 2026. While this blog focuses on the Swiss CARF implementation, we will publish a second blog shortly focusing on CRS 2.0 and the more general aspects of the consultation.
Exploring the integration of tax in EU sustainability regulations
This blog explores in summary how sustainable tax practices and tax transparency are part of key EU sustainability (reporting) regulations and what this means for companies. It focuses on how tax is integrated in the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS), the EU Taxonomy Regulation, and the Sustainable Finance Disclosure Regulation (SFDR).
Swiss taxation of cryptocurrencies – Do withholding tax and stamp duties apply?
Widespread adoption of cryptocurrencies and the increasing economic importance of digital assets increases the need to understand their respective tax implications. In Switzerland taxation of cryptocurrencies is usually based on existing tax laws. The Federal Tax Administration (FTA) has detailed its practice in a recently updated working paper.
Expanding on our previous blog post, this article provides a more in-depth analysis of withholding tax and stamp duty regulations regarding digital assets in Switzerland.
Official launch of Limited Qualified Investor Funds in Switzerland on March 1, 2024
With the enactment of the amended Collective Investment Schemes Act and Ordinance on March 1, 2024, the Limited Qualified Investor Fund (L-QIF) is now officially launched in Switzerland. As it does not require FINMA approval, it is an attractive, cost-efficient alternative to the Luxembourg RAIF, for example. The new scheme is restricted to qualified investors and must be managed by a regulated fund manager. However, like other collective investment schemes, it is also subject to the Swiss withholding tax, which makes it a less attractive option for international investors.
Swiss taxation of cryptocurrencies – how are investors taxed?
Widespread adoption of cryptocurrencies and the increasing economic importance of digital assets increases the need to understand their respective tax implications. In Switzerland taxation of cryptocurrencies is usually based on existing tax laws. The Federal Tax Administration (FTA) has detailed its practice in a recently updated working paper.
This series of blogs will focus on explaining the income and wealth tax implications for owning and trading digital assets, the tax consequences for VAT, stamp duties and withholding tax, as well as taxation at issuer level.
Swiss and European Fund Investor Taxation Event on the 15th of November 2023
We would like to invite you to our upcoming in-person tax event taking place on Wednesday, 15th of November 2023 at 4.30 pm CET at our office in Zurich.
The winds of change are blowing: from voluntary to mandatory tax disclosures and their significance within ESG reporting
The concept of tax transparency is far from new, having been a subject of international discussions for several years. The importance of a state's ability to respond promptly and to allocate tax revenue in addressing various challenges, including financial and health crises has further propelled the topic and heightened the interest of regulators, tax authorities, consumers, investors, and society leading to a higher demand in (tax) transparency.
In the wake of this increased interest, the importance of tax disclosures and their link to sustainability and ESG reporting has come to the forefront.
Numerous organizations and governmental entities, including the United Nations (UN) and the European Union, recognize the crucial role of taxation in the transition to a greener and more sustainable economy. The UN Development Program (UNDP) acknowledges tax as a “powerful tool for revenue collection and a policy instrument to encourage sustainable growth strategies and influence behaviour towards desired outcomes related to climate, nature, well-being, and governance”.
Global Minimum Tax: Swiss voters pave the way for implementation in 2024
In the popular vote on 18 June 2023, Swiss voters approved the most extensive change to the Swiss corporate tax system in over a century with a wide majority. With the amendment of the Swiss constitution the Swiss voters have paved the way for the Swiss legislator to introduce the global minimum tax (also referred to as “Pillar II”) in Switzerland.
Pillar II introduces an additional layer of taxation (tax law) to Swiss constituent entities of multinational enterprises in scope of the rules and introduces a corporate group taxation system in Switzerland with a mandatory tax of 15% that is determined under a new tax basis (“GloBE”).
The magnitude of change is significant and will redefine the Swiss corporate tax environment in the years to come.
Join our Financial Services Tax webinar relating to high interest rates, withholding tax reclaims, Pillar 2 and VAT updates on 31 May 2023 at 8.30 am CET
We would like to invite you to our upcoming webinar on high interest rates, withholding tax reclaims, Pillar 2 and VAT updates on Wednesday 31 May 2023 at 08.30am.