Stockholm, 10 November 2023
The Government has signed up to a collective engagement to implement the multilateral framework for automatic exchange of information in tax matters regarding crypto-assets. Automatic exchange of information is intended to prevent tax evasion and avoidance.
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Sweden is one of a number of countries that have signed up to a collective engagement to implement the OECD’s standard on automatic exchange of information between tax authorities – the Crypto-Asset Reporting Framework (CARF) – as well as the Common Reporting Standard (CRS 2.0) for exchange of information on financial accounts.
The EU has previously adopted a directive on automatic exchange of information and reporting on transactions in crypto-assets (DAC8). However, given the digital nature of crypto-assets, there is a risk of DAC8 being circumvented through the use of trading venues in third countries that lack reporting or information exchange requirements. This means that it is crucial that the CARF is used as widely as possible throughout the world.
Source – Swedish Government
In future, cryptoassets to be included in international automatic exchange of information in tax matters
Bern, 10 November 2023
In a joint statement issued today, around 50 jurisdictions, including Switzerland, have undertaken to implement the expanded international automatic exchange of information in tax matters (AEOI). The expansion concerns cryptoassets and is to apply from 1 January 2026. The Federal Department of Finance (FDF) will prepare a consultation draft for the implementation of the expanded AEOI by the end of June 2024.
On 8 June 2023, the OECD Ministerial Council adopted the revised recommendation on AEOI standards. The amendments include the revision of the Common Reporting Standard (CRS) for financial accounts and the addition of the new Crypto-Asset Reporting Framework (CARF). While the amendment of the CRS clarifies interpretation issues and takes practical experience into account, the CARF regulates the handling of cryptoassets and their providers. Cryptoassets are digital assets based on a distributed ledger or similar technology.
The OECD adopted the CRS in 2014. Switzerland undertook to implement this standard and also to adopt any further developments.
Switzerland also intends to implement the CARF. Accordingly, the FDF has consulted the relevant parliamentary committees of both chambers (the Economic Affairs and Taxation Committees and the Foreign Affairs Committees), which are in agreement with this procedure. The FDF will prepare a consultation draft for the implementation of the revised CRS and the CARF by the end of June 2024.
The CARF is intended to close gaps in the tax transparency mechanism and ensure that cryptoasset providers are treated in the same way as the traditional financial sector. Implementation of the CARF will enhance Switzerland’s progressive cryptomarket regulation and contribute to the credibility and reputation of the Swiss financial centre.
Source – Swiss Government