Anyone who trades cryptocurrencies and has submitted a tax return before knows how much effort is involved in collecting and preparing the crypto tax data. In this regularly-updated guide, we explain how you can submit your crypto taxes in Switzerland efficiently and in time for the tax deadline.
How to Declare Crypto Taxes in Switzerland?
Regardless of the crypto tax tool of your choice, Switzerland generally subjects cryptocurrency assets to wealth and income tax (if applicable) based on worldwide income and wealth tax values. One must declare cryptocurrencies in the annual tax return together with other financial assets, income, and real estate. Capital gains and losses from non-commercial trading are tax-free.
If you’re using Accointing as your crypto tax software, you need to generate your crypto tax report before you can submit your crypto taxes. Make sure you have registered correctly with Accointing, made the right tax settings, and verified all your data for accuracy. Generally, you’ll receive your tax return annually from the cantonal tax administration and must submit it there, which is possible online in all cantons. Each canton has a slightly different procedure and a different tax return. Below you will find an overview of the specific requirements of some cantons:
Canton of Aargau
Cryptocurrencies are moveable items that can be valued for tax purposes. In the interest of a simple and easily comprehensible declaration, cryptocurrencies must be listed in the annual tax return in the form “List of securities and credit balances” (form 101.05). The code “UE other assets” must be entered in the first column. The holdings of cryptocurrencies can usually be proven with a printout of the year-end holdings in the “wallet,” i.e., the digital wallet.
Canton of Basel City
Principally, crypto assets need to be declared in your tax return using code 835 (“Bargeld, Edelmetalle und übrige Vermögenswerte”). Crypto assets are subject to wealth tax (cf. § 45 para. 1 StG). Proof must be provided with a copy of the wallet at the end of the tax period or the tax liability (cf. § 54 para. 1 StG).
Canton of Bern
Crypto assets must be declared in your tax return using form 3 (“Wertschriftenverzeichnis und Rückerstattungsantrag Verrechnungssteuer”). As with other private assets, the portfolio market value as of 31 December is decisive for their valuation.
Canton of Lucerne
In principle, crypto assets are subject to wealth tax in the Canton of Lucerne (§ 43 para. 1 StG). The market value as of 31 December or the end of the tax liability is decisive for the valuation. The year-end rate, according to the stock exchange used, is to be used. For cryptocurrencies without an official market value, the purchase price can be declared as an asset. The declaration is made in the list of securities as other assets. An extract from the wallet (digital wallet) must be enclosed with the declaration as evidence in the tax return.
Canton of St. Gallen
Cryptocurrencies must be declared in the list of securities and credit balances. In the event of a change in the holdings of securities and receivables (acquisition, sale, repayment, or conversion), the date of the addition or disposal must be entered in the corresponding columns, and the bank documents must be attached.
Canton of Zug
In the canton of Zug, crypto-assets are entered in the list of securities (code 160 for crypto-asset income and code 600 for assets) in your tax return. If the cryptocurrencies are part of the business assets, the book value principle applies to them. In this case, the accounts must record price fluctuations according to commercial law principles.
Canton of Zürich
Cryptocurrencies must be declared in the securities and assets register as “other assets.” Proof must be provided with a copy of the wallet. The mining of cryptocurrencies by a natural person by providing computing power against payment leads to taxable income from self-employment.
Crypto taxes in other cantons
Here, you will find a list of all tax administrations in Switzerland.
Filing on your Own
In preparing your crypto taxes, two results from the Accointing tax report are relevant: the sum of taxable asset income and the portfolio value at the end of the tax year. In the “Tax return 2022 for natural persons” form, enter the total amount of taxable asset income from cryptocurrencies in line 5.4 on page 2. You can find this information in your Accointing report on the first page under “Taxable Asset Income.”
The total amount of taxable asset gains from cryptocurrencies must be entered in line 5.4 on page 2 of the “2022 tax return for natural persons” form. You can find this information in your Accointing report on the first page under “Steuerbare Vermögenserträge.”
The value of your cryptocurrency holdings will be assessed based on the exchange rate published by the FTA on December 31, 2022. If no official rate is available, the value as of December 31 of the corresponding year will be determined based on the disclosed rates of a crypto platform (e.g. coinmarketcap.com). Go to line 25.6 on page 4 of the form “Other assets; further description” and enter the total value of your portfolio according to the summary on page 3 of your Accointing report.
Once you have completed the steps described above, you have successfully submitted your cryptocurrency taxes to the FTA. As long as you are considered a private investor, you have no further tax obligations in relation to cryptocurrencies.
Filing with a Professional
If you have a significant amount of cryptocurrency investments, run a business, or have a complex tax situation, it would be beneficial to seek advice from an experienced tax expert. Although Accointing can simplify the process of creating a tax report, the taxation of digital assets is a complex and rapidly changing area. A qualified professional can help you master the nuances of this field and correctly classify the data for tax purposes. If you have specific questions about your tax situation, do not hesitate to contact the tax experts at BDO Switzerland.
Accointing’s Tax Report
Accointing provides a tax report containing a summary of all tax-related cryptocurrency transactions for the selected tax year in full compliance with FTA guidelines. It is available in both pdf and excel formats for convenience.
- The first page of your report contains the development of assets shown at the top of the tax report. Listed are the market value of your portfolio at the beginning of the tax period (01.01.2021) and the portfolio’s market value at the end of the tax period (31.12.2021). The blue tile “Gesamte Wertentwicklung” is your total performance and shows the difference between the opening balance as of 01.01.2021 and the closing balance as of 31.12.202.
- The calculation of your total performance “Gesamte Wertentwicklung” can also be seen in the grey items: taxable income “Steuerbare Vermögenserträge,” realized tax-free capital gains “realisierten steuerfreien Kapitalgewinne,” and other changes in value “Übrigen Wertveränderungen“:
- The taxable income “Steuerbare Vermögenserträge” is presented by category. The details of these amounts can be found on Page 5 – taxable income.
- Similarly, the realized tax-free capital gains/losses “Realisierte steuerfreie Kapitalgewinne/-verluste” are presented by category.
Other changes in value “Übrige Wertveränderungen”
- This page lists all transactions that are not directly relevant for tax purposes but have an impact on the portfolio value and are therefore listed individually to contribute to the transparency of the portfolio’s developments in the tax year.
Summary of cryptocurrencies
- This page will give you an overview of all cryptocurrencies in your portfolio. If available, we use the official rates of the FTA as price sources; otherwise, we use the data of Coinmarketcap.
Official FTA rates
- Here you will find a list of all cryptocurrencies for which the official rates of the FTA are used.
Taxable Income “Steuerbare Vermögenserträge”
- Here, you will find a list of all taxable income categories within your portfolio. The sum of these classifications must be declared as taxable income in the tax return. Each cantonal regulation may differ as to where or in what form the values must be declared (e.g., list of securities).
- Although the FTA has yet to issue guidelines for several DeFi protocols, it is possible that many DeFi activities, such as yield farming and liquidity mining, qualify as additional income and are also subject to taxable income. You should check this with your tax advisor.
Taxable income from margin trading
- This is a detailed view of the income from margin trading and serves as proof of the total amount. Only positive amounts are transferred, i.e. a profit margin, whereby if there is a total loss, this is not deductible and is not included.
Switzerland Crypto Tax Filing FAQs
When is the deadline for filing tax returns in Switzerland?
The tax deadline is March 31, 2023.
Can I request an extension for my tax return?
Each canton has slightly different regulations, but in most cantons, an extension can be easily requested online. Usually, only the registration number and some personal information for identification are required. On this page, you can find an overview of all deadlines for tax returns in each canton for the 2022 tax year.
What is the wealth tax rate in Switzerland?
The Vermögenssteuer (wealth tax) rate and exemption vary by canton in Switzerland. Most cantons have a progressive tax rate between 0.3% and 1% for wealth, meaning higher assets incur higher tax percentages. The exemption is usually around CHF 100,000 per taxpayer. Check your canton’s website for specific rates.
The information contained in this guide is for general information purposes and does not constitute financial, investment, legal, or tax advice. The present content is not intended as a thorough, in-depth analysis, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. Please consult your tax advisor.