Current Swiss tax law is applicable to developments in the blockchain industry, according to the Swiss Federal Council. According to the federal authority, Switzerland does not need to change its existing tax legislation with regard to blockchain and distributed ledger technology.
No legislative measures required for blockchain
At a meeting on June 19, the Federal Council dealt with a report dealing with the need to change Swiss tax law due to developments in the DLT and blockchain sector. The official statement states that existing legislation, including income, profit, property and capital gains taxes, as well as value added tax, has “proven” in relation to the use of DLT and blockchain.”
Therefore, no legislative measure for special tax provisions for the new instruments is necessary,” said the Federal Council. The agency also recommended that the withholding tax should not be extended to income from share and participation tokens.Cointelegraph has asked the Swiss tax authorities for more information. The article will be updated as soon as there is an answer.
Swiss Federal Council monitors blockchain developments
The recent decision of the Swiss Federal Council was preceded by an audit in 2018, in which the need for changes to Swiss tax law with regard to blockchain was considered. In December 2018, the authority said that Switzerland’s legal framework was applicable to dealing with new technologies such as blockchain.