Switzerland Tax Law Will Have No Effect on Blockchain Industry And DLT
- The Swiss Federal Council took into account the need to amend the tax law for the Blockchain industries.
- It has announced that no special legislative amendments required regarding the tax law.
Today in its council meeting, the Swiss Federal Council took into account the need to amend the tax law for the Blockchain industries. It has announced that no special legislative amendments required regarding the tax law. The Blockchain industry and the distributed ledger technology will have no consequences due to the tax law.
As of its proven worth, the existing legislature has done everything regarding the income, profit, wealth and capital gain taxes. The prevailing VAT law in fact covered all the arrangements necessary and required for the blockchain and distributed ledger technology (DLT). Clearly, there were no additional needs for any new legislative amendment regarding this.
Switzerland has always been an ideal and important destination for people to develop their startups and businesses. It is one of the main reasons why Switzerland has been always trying to create favourable and optimal conditions to establish itself as a sustainable and innovative location for FinTech and Blockchain industries. However, this is not it yet. They are also trying to improve the security and preserve its reputation for providing best security facilities.
In 2019, the Swiss Federal Council had issued another report on the similar field. However they concluded that their legal framework fits property with the blockchain and the distributed ledger technology (DLT), but there were small changes required. They planned on increasing the amount of legal certainty on the transfer of rights. They also felt the need to adapt the financial market law for the Blockchain based industries.
Similarly in 2018, the Swiss Federal Council issued another similar report. They again made a minute set of adjustments. They proposed an electronic registration of rights that will guarantee the use of the negotiable securities created.
In the recent report they looked over another area of retaining taxes on incomes for equity and participation tokens. Owing to the best conditions for businesses in Switzerland as mentioned above it has decided not to expand the tax coverage. Addition to which, they also advised not to make any special legislative amendments on the transfer stamp law because of the uncertainty of the type and scope of the future use of the DLT trading facilities.