Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 16.01.2018, 21:25
Newbie 1st class
 
Join Date: Oct 2015
Location: Zurich
Posts: 29
Groaned at 3 Times in 3 Posts
Thanked 14 Times in 12 Posts
kamudo has no particular reputation at present
Crypto currency tax declaration in Switzerland

Just a general question.
Has anyone had to pay taxes on the crypto currency earnings yet?
Reply With Quote
  #2  
Old 16.01.2018, 21:51
Meadow's Avatar
Senior Member
 
Join Date: Jul 2016
Location: Zurich
Posts: 270
Groaned at 6 Times in 5 Posts
Thanked 94 Times in 62 Posts
Meadow has no particular reputation at present
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?
Reply With Quote
  #3  
Old 16.01.2018, 22:22
Forum Veteran
 
Join Date: Feb 2012
Location: CH
Posts: 2,304
Groaned at 87 Times in 73 Posts
Thanked 2,002 Times in 1,123 Posts
ivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond repute
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

Quote:
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?
Reply With Quote
The following 3 users would like to thank ivank for this useful post:
  #4  
Old 17.01.2018, 11:33
martin959's Avatar
Forum Veteran
 
Join Date: Oct 2009
Location: Basel
Posts: 1,135
Groaned at 25 Times in 16 Posts
Thanked 534 Times in 296 Posts
martin959 has earned the respect of manymartin959 has earned the respect of manymartin959 has earned the respect of many
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?
Reply With Quote
  #5  
Old 17.01.2018, 11:37
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 17,940
Groaned at 285 Times in 234 Posts
Thanked 15,428 Times in 8,573 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Crypto currency tax declaration in Switzerland

Quote:
View Post
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
Reply With Quote
The following 2 users would like to thank fatmanfilms for this useful post:
  #6  
Old 17.01.2018, 12:07
Forum Veteran
 
Join Date: Feb 2012
Location: CH
Posts: 2,304
Groaned at 87 Times in 73 Posts
Thanked 2,002 Times in 1,123 Posts
ivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond repute
Re: Crypto currency tax declaration in Switzerland

Quote:
View Post
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
Reply With Quote
This user would like to thank ivank for this useful post:
  #7  
Old 17.01.2018, 13:51
Forum Veteran
 
Join Date: Mar 2010
Location: Greater Zürich Area
Posts: 838
Groaned at 112 Times in 70 Posts
Thanked 619 Times in 348 Posts
EPMike has earned the respect of manyEPMike has earned the respect of manyEPMike has earned the respect of many
Re: Crypto currency tax declaration in Switzerland

Quote:
View Post
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
Reply With Quote
The following 2 users would like to thank EPMike for this useful post:
  #8  
Old 22.01.2018, 10:11
Newbie 1st class
 
Join Date: Oct 2015
Location: Zurich
Posts: 29
Groaned at 3 Times in 3 Posts
Thanked 14 Times in 12 Posts
kamudo has no particular reputation at present
Re: Crypto currency tax declaration in Switzerland

Basically, what I gather from the responses, none have paid or declared anything yet
Reply With Quote
This user groans at kamudo for this post:
  #9  
Old 22.01.2018, 16:23
Forum Veteran
 
Join Date: Feb 2012
Location: Zürich
Posts: 917
Groaned at 3 Times in 3 Posts
Thanked 522 Times in 317 Posts
ChrisNeedsToKnow has a reputation beyond reputeChrisNeedsToKnow has a reputation beyond reputeChrisNeedsToKnow has a reputation beyond reputeChrisNeedsToKnow has a reputation beyond repute
Re: Crypto currency tax declaration in Switzerland

considering the enthusiasm, what I gather from the responses, no-one is (or was) invested
Reply With Quote
This user would like to thank ChrisNeedsToKnow for this useful post:
  #10  
Old 23.01.2018, 10:24
Member
 
Join Date: Jul 2016
Location: GR
Posts: 183
Groaned at 11 Times in 9 Posts
Thanked 49 Times in 46 Posts
wantone has become a little unpopular
Re: Crypto currency tax declaration in Switzerland

Quote:
View Post
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.
Reply With Quote
This user would like to thank wantone for this useful post:
  #11  
Old 23.01.2018, 10:32
NotAllThere's Avatar
Forum Legend
 
Join Date: Oct 2008
Location: Baselland
Posts: 10,932
Groaned at 166 Times in 144 Posts
Thanked 15,518 Times in 6,279 Posts
NotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond repute
Re: Crypto currency tax declaration in Switzerland

Quote:
View Post
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.
Reply With Quote
This user would like to thank NotAllThere for this useful post:
  #12  
Old 23.01.2018, 10:35
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 10,294
Groaned at 79 Times in 70 Posts
Thanked 15,579 Times in 6,912 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: Crypto currency tax declaration in Switzerland

Quote:
View Post
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
__________________
“That’s the second biggest monkey head I’ve ever seen!”
Reply With Quote
This user would like to thank aSwissInTheUS for this useful post:
  #13  
Old 23.01.2018, 10:46
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 10,294
Groaned at 79 Times in 70 Posts
Thanked 15,579 Times in 6,912 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: Crypto currency tax declaration in Switzerland

Quote:
View Post
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.
Reply With Quote
  #14  
Old 17.09.2018, 18:11
Member
 
Join Date: Dec 2007
Location: Zurich
Posts: 160
Groaned at 2 Times in 2 Posts
Thanked 121 Times in 57 Posts
BigB.ZH has slipped a little
Re: Crypto currency tax declaration in Switzerland

read this if you are thinking of a taking profits in CHF, or someone receiving his/her salary in cryptocurrency, or someone mining

Commercial trade of cryptocurrencies
Capital gains from movable private assets are in principal tax exempt in Switzerland. At the same time, exchange losses are not tax deductible. If, however, a person commercially trades in cryptocurrencies (e.g. because it is a professional security trader), any gains are taxable as self-employed income and in such case, losses are tax deductible. The demarcation criteria are based analogously on circular No. 36 of the SFTA on commercial securities trading (cf. third paragraph LU Leaflet and No. 5 ZG Leaflet).
If an employee or a self-employed receives cryptocurrencies as a salary payment or as a compensation for services, these earnings are subject to income tax (cf. No. 4 ZG Leaflet); moreover, if self-employed persons are paid for their services in cryptocurrencies, this must be allocated to the business assets and in such cases, profits from price rises in cryptocurrencies, if realized, will not be qualified as tax exempt but rather as income from self-employment.

Mining-Profits are subject to income tax
Mining of a cryptocurrency, in simple terms, means offering computer processing power for the operation of e.g. Bitcoin and being paid, in this case, with Bitcoins. Both the LU Leaflet and the ZG Leaflet state that mining-profits are generally subject to income tax (cf. third paragraph LU Leaflet and No. 4 ZG Leaflet).

source: http://blog.vischer.com/en/taxation-of-cryptocurrencies
Reply With Quote
  #15  
Old 19.09.2018, 19:46
Member
 
Join Date: Dec 2007
Location: Zurich
Posts: 160
Groaned at 2 Times in 2 Posts
Thanked 121 Times in 57 Posts
BigB.ZH has slipped a little
Re: Crypto currency tax declaration in Switzerland

Cryptocurrencies are treated like Stocks and this will help clear some important questions surrounding Capital Gains:

Buying, owning and selling securities is not always profitable. Investors who earn dividends or profit on the sale of their securities have reason to feel accomplished. But before counting your chickens, it is important to account for possible taxes.

Taxable dividends

Dividends paid out to investors in Switzerland must always be included in investors’ taxable income. Your gross dividends (full dividends before the deduction of anticipatory tax) must be added to taxable income for income tax purposes.

Example: You hold 300 Swiss shares, and receive a per-share dividend of 3 Swiss francs for total dividends of 900 francs. The 900 francs of dividends must be added to your taxable income when you complete your tax return. The money deducted for the 35% anticipatory tax – 315 francs in this example – is returned to you by the tax office.

Swiss capital gains

Taxes on capital gains earned when you sell securities at a profit are less straightforward. Whether or not you pay capital gains tax on trading profits depends on whether the tax office categorizes you as a private investor or a professional investor.

Private investors do not pay capital gains tax on profits earned through the sale of their own assets. Professional investors, on the other hand, must tax capital gains as income.

Private investor vs. professional investor

Private investors – individuals who invest their own assets in securities – may, in some cases, be categorized as professional investors by a tax office. When this happens, the private investor will be required to pay tax on profits earned through their trading activities.

Whether or not you as an investor must pay tax on your trading profits depends entirely on whether you are categorized as a private investor or as a professional investor by the tax office.

The 5 criteria used to determine your tax status

Guidelines published by The Federal Tax Administration list 5 criteria to be used by tax offices in determining the tax status of investors. You can only be sure that you will not be categorized as a professional investor if you meet all of these criteria:
  1. You hold securities for at least 6 months before you sell them.

  2. The transaction volume of all of your securities trades combined (total spent on purchases and total earned on sales) is not higher than 5 times the total value of your securities at the start of a tax year.

  3. Capital gains generated through securities trading do not account for a significant portion of your basic income. The rule of thumb: Capital gains should account for less than 50 percent of your net income.

  4. You use your own assets to finance the purchase of securities. Or: Taxable returns like interest and dividends are higher than interest owed on debt.

  5. If you invest using derivatives – and options in particular – these can only be used to hedge your own securities.

Tax offices are free to implement these criteria in keeping with their own standard practices, so the way in which you are categorized varies between cantons and municipalities. In some cases, investors who do not meet the criteria listed above may still be categorized as private investors and not have to tax their capital gains.

If you are unsure of your tax status, consider consulting a specialized tax advisor. You can also request advance judgment on your tax status from your local tax office.
Reply With Quote
Reply

Tags
bitcoin, crypto, cryptocurrency




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Wealth tax declaration - Permit B -> Full Declaration Enohzee Finance/banking/taxation 23 18.04.2018 11:37
Buying Cryptocurrencies in Switzerland [Brokers + HowTo Cash to Crypto] defcon3 Finance/banking/taxation 50 09.01.2018 10:34
Listing Crypto Assets in Tax Return defcon3 Finance/banking/taxation 6 23.08.2017 10:27
Do I have the right to see my previous tax declaration in Switzerland? ZJF Finance/banking/taxation 1 25.03.2013 10:29
Tax Declaration in Geneva dyana2000 Finance/banking/taxation 0 25.03.2010 13:54


All times are GMT +2. The time now is 22:40.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0