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Mood "Steuerberatung und Rechtsberatung"
Tax & Legal Advising

Taxation of Bitcoins

29 December 2016
Read time: 2 mins
Of Counsel (AEOI, CRS, FATCA)

In Switzerland digital currencies are subject to income tax and profit tax; assets are subject to wealth tax. Switzerland's tax authorities treat digital currencies in very much the same way as foreign currencies that are translated into Swiss francs when assessing a natural person (...).The Swiss Federal Tax Administration (EStV) calculates the tax value of Bitcoins by determining the average based on the five most important financial platforms, among them investing.com. In the process the highest and the lowest value are disregarded to avoid distortions. At the end of 2015 EStV's calculations resulted in CHF 420.88 for Bitcoins. Considering the current exchange rates, the value might be twice as high at the end of this year.

Digital currencies are a challenge for authorities: We are also faced with the digital currency Bitcoin in the real world for it can be bought and sold at machines. Since November people have been able to buy the digital currency from SBB's ticket vending machines. (…) In Switzerland digital currencies are subject to income tax and profit tax; assets are subject to wealth tax. Switzerland's tax authorities treat digital currencies in very much the same way as foreign currencies that are translated into Swiss francs when assessing a natural person (...)

Commentary:

The Swiss Federal Tax Administration (EStV) calculates the tax value of Bitcoins by determining the average based on the five most important financial platforms, among them investing.com. In the process the highest and the lowest value are disregarded to avoid distortions. At the end of 2015 EStV's calculations resulted in CHF 420.88 for Bitcoins. Considering the current exchange rates, the value might be twice as high at the end of this year.

Source: Neue Zürcher Zeitung 28 December 2016