AIA and crypto assets

The consultation period lasted until September 6, 2024, and the new regulations are to be implemented on January 1, 2026 so that the first data exchange can take place as early as 2027. We have summarized the most important key points of the bill for you below.

Key points of the proposal

Legal implementation

In order for the first data exchange based on the new regulations to take place in 2027, the project primarily requires approval of the necessary international legal bases, namely the addendum to the AEOI agreement on financial accounts and the AEOI agreement on crypto assets, as well as an amendment to the domestic legal bases, i.e. the Federal Act and the Ordinance on the International AEOI in Tax Matters. Due to the factual connection with the AEOI on financial accounts, the provisions on the AEOI on crypto assets are to be integrated into the existing foundations for the automatic exchange of information on financial accounts.

The extension concerning crypto-monnaie will only be granted to countries with which the extension has been bilaterally agreed and activated by means of notification. It is not yet clear which countries this applies to.

Obligation to register

In principle, all providers of crypto services that have a connection to Switzerland must register with the FTA without being asked, regardless of whether they comply with the due diligence and reporting obligations in Switzerland or in another participating state. This is different from the AEOI on financial accounts and means that providers of crypto services that are resident for tax purposes in a country other than Switzerland must also register with the FTA in addition to any registration in the other country if, for example, they are managed from Switzerland.

Duty of care

In contrast to the AEOI on financial accounts, which generally provides for different types of identification for existing accounts and new accounts, for the purposes of the AEOI on crypto assets, providers of crypto services must obtain a self-certification from both existing and new crypto users. For existing accounts, a transitional period of 12 months applies from the entry into force of the law, i.e. probably until 31.12.2026.

Obligation to report

In contrast to the AEOI for financial accounts, there is no equivalent exception for so-called "exempt accounts" in the AEOI for crypto assets. A crypto user who is a natural person must be reported in any case if he or she is a person of a country subject to the reporting obligation.

Penal provisions

The bill stipulates that negligent breaches of duty are now also punishable, not just intentional breaches. This applies to both the AEOI on financial accounts and the new AEOI on crypto assets. This amendment is intended to ensure that financial institutions and providers of crypto services fulfill their obligations diligently.

Conclusion

With the proposal and the associated extension of the AEOI to crypto assets, Switzerland is fulfilling its obligations to maintain international tax transparency, which will contribute to the credibility and reputation of Switzerland as a financial center.

For Swiss residents, the automatic exchange of information on crypto assets is relevant from a tax perspective, particularly in connection with the possibility of voluntary self-disclosure without penalty. With the increasing tax transparency of crypto assets, it will be less and less possible in the foreseeable future to declare undeclared crypto assets without penalty by means of a voluntary disclosure.

In this respect, it is urgently recommended that you take action promptly and thus before the first automatic exchange in 2027 and report relevant income and wealth tax factors in connection with crypto assets to the competent cantonal tax authority if these have not yet been properly declared and taxed. We will be happy to assist you with this.