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Old 16.01.2018, 21:25
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Crypto currency tax declaration in Switzerland

Just a general question.
Has anyone had to pay taxes on the crypto currency earnings yet?
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Old 16.01.2018, 21:51
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Re: Crypto currency tax declaration in Switzerland

A question maybe in the same topic would be: let's say you exchanged CHF to USD and then back to CHF, earning 10'000 CHF on exchange rate difference. Is it taxable?

Does the tax office treat cryptos as currency, securities, works of art, or is it completely unregulated?
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Old 16.01.2018, 22:22
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Re: Crypto currency tax declaration in Switzerland

Taxable if you're doing it professionally. Whether you're doing it professionally enough or not is the hard question.

One thing that's considered taxable are mining profits, this is covered in ZH's FAQ already. So with regards to it, the more interesting question to ask is rather had anyone been caught not paying the taxes due already

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Does the tax office treat cryptos as currency, securities, works of art, or is it completely unregulated
All of these are sorts of wealth assets, why there has to be any significant difference in treating them from tax perspective?
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Old 17.01.2018, 11:33
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Re: Crypto currency tax declaration in Switzerland

So, long story short, if you bought a Bitcoin at 300 Chf and now its 10k Chf, you will have to pay taxes IF you change it back to Chf?
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Old 17.01.2018, 11:37
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Re: Crypto currency tax declaration in Switzerland

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So, long story short, if you bought a Bitcoin at 300 Chf and now its 10k Chf, you will have to pay taxes IF you change it back to Chf?
Taxes are the same if it's Bitcoin or CHF, tax value being significantly higher than market value. Amusingly tax liability for 2017 could exceed market value by the end of year 2018
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Old 17.01.2018, 12:07
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Re: Crypto currency tax declaration in Switzerland

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So, long story short, if you bought a Bitcoin at 300 Chf and now its 10k Chf, you will have to pay taxes IF you change it back to Chf?
Only if you were trading professionally...

Wealth tax is due regardless
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Old 17.01.2018, 13:51
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Re: Crypto currency tax declaration in Switzerland

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Taxes are the same if it's Bitcoin or CHF, tax value being significantly higher than market value. Amusingly tax liability for 2017 could exceed market value by the end of year 2018
Glad to see your optimism with regard to crpytos
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Old 22.01.2018, 10:11
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Re: Crypto currency tax declaration in Switzerland

Basically, what I gather from the responses, none have paid or declared anything yet
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Old 22.01.2018, 16:23
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Re: Crypto currency tax declaration in Switzerland

considering the enthusiasm, what I gather from the responses, no-one is (or was) invested
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Old 23.01.2018, 10:24
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Re: Crypto currency tax declaration in Switzerland

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A question maybe in the same topic would be: let's say you exchanged CHF to USD and then back to CHF, earning 10'000 CHF on exchange rate difference. Is it taxable?

Does the tax office treat cryptos as currency, securities, works of art, or is it completely unregulated?
CH doesn't tax capital gains and therefore I'd think it is not taxable. Other countries like Canada would want you to declare FX gains and tax you accordingly.
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Old 23.01.2018, 10:32
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Re: Crypto currency tax declaration in Switzerland

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Basically, what I gather from the responses, none have paid or declared anything yet
I have a tax certificate from my broker. The value of my cybercurrency holding (0.01 Bitcoin and 0.30 Ethereum ) in CHF at 23:59:59 on 31.12.2017 I should declare as part of my wealth on my 2017 tax return.
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Old 23.01.2018, 10:35
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Re: Crypto currency tax declaration in Switzerland

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CH doesn't tax capital gains and therefore I'd think it is not taxable..
CH does not tax capital gains only in cases where is not from professional trading. There is only a definition when it is not considered professional trading based on several criteria. If one of those criteria is not met it might be professional trading and thus taxable.

See circular No. 36 from the Federal Tax Administration
German: https://www.estv.admin.ch/dam/estv/d...6-D-2012-d.pdf

French:
https://www.estv.admin.ch/dam/estv/f...6-D-2012-f.pdf

Italian:
https://www.estv.admin.ch/dam/estv/i...6-D-2012-i.pdf
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Old 23.01.2018, 10:46
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Re: Crypto currency tax declaration in Switzerland

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So, long story short, if you bought a Bitcoin at 300 Chf and now its 10k Chf, you will have to pay taxes IF you change it back to Chf?
With such a long holding time you will hardly meet the professional trading criteria for this part of your portfolio.

Note that circular 36 also says that lucky circumstances shall be lucky circumstances and not taxed. For ex: you bought Bitcoins the very first time mid November and sold at its peak in December it would be tax free.
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