Switzerland Delays Automatic Crypto Tax Data Sharing with Foreign Authorities Until at Least 2027
Switzerland will legally adopt the reporting framework for crypto assets from 2025, but will postpone the automatic cross-border exchange of crypto tax data until at least 2027. This decision comes as the country aims to balance its commitment to combating tax evasion with the need for clarity on which partner countries will receive Swiss crypto account data.
The Swiss authorities will implement the reporting framework for crypto assets into national law on January 1st, but will postpone practical implementation for at least a year. The delay is due to suspended talks over which partner countries will receive Swiss crypto account data, despite 75 countries committing to adopting the framework. The US is considering joining via an IRS proposal, while non-signatories such as Argentina, El Salvador, Vietnam, and India remain outside the agreement.
Background on the Crypto-Asset Reporting Framework
The Organization for Economic Cooperation and Development (OECD) approved the Crypto-Asset Reporting Framework in 2022 as part of a global initiative to combat tax evasion through information sharing. The aim of the framework is to enable partner governments to exchange data about their citizens’ cryptocurrency accounts. According to OECD documents, 75 countries, including Switzerland, have committed to implementing the framework over the next two to four years.
The Swiss government’s announcement also detailed changes to local cryptocurrency tax reporting requirements, as well as transitional provisions designed to make compliance easier for domestic cryptocurrency businesses. The White House reportedly recently reviewed a proposal from the Internal Revenue Service to join the framework as part of an initiative to impose stricter cryptocurrency capital gains reporting requirements for American taxpayers using foreign exchange.
Implications and Next Steps
The postponement of the automatic cross-border exchange of crypto tax data until at least 2027 gives Switzerland and other participating countries time to iron out the details of the framework and ensure that it is implemented effectively. However, it also means that the full benefits of the framework, including improved tax compliance and reduced tax evasion, may not be realized until later than initially anticipated.
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