We accept crypto currencies
(Bitcoin, Ethereum, Ripple) Legal entities and partnerships ceasing their business activities should be formally liquidated sooner or later. The required proceedings and tax consequences in Switzerland are summarised in this newsletter.
Christian Maeder
Reichlin Hess AG receives a reward for one of the best law firms 2020 in Switzerland for tax and employment law
We are delighted to have been ranked in the top category of law firms in Switzerland for tax and employment law in 2020.
Fiscal measures of the Canton of Zug in connection with the Coronavirus
Due to the Coronavirus situation the tax authorities of the Canton of Zug have taken various measures to support the…
Federal Council postpones start of court vacations
Pursuant to the decree, the Federal Council has announced the start of the Easter judicial vacations in civil and administrative…
Corporate Tax Rates and Tax Rates for Individuals for 2020 in the Cantons Zug, Lucerne, Zurich, and Schwyz
The tax burden between the cantons and also between municipalities within the same canton may vary considerably. Our examples of the corporate tax rates and tax rates for individuals for 2020 tax year provide a first overview.
Taxation of capital gain from the sale of real estate in the Cantons of Zug, Zurich, and Lucerne
Our tax experts address the most relevant questions regarding the real estate gains tax in Switzerland, with a particular focus on the Cantons of Zug, Zurich and Lucerne.
Stable Coins
During its meeting held on 15 January 2020, the Swiss Federal Council took note of the recent developments regarding so-called stable coins. Stable Coins are blockchain-based tokens that are backed with assets in order to minimize fluctuations in value.
New Attorney and Certified Specialist SBA Employment Law: Simon Fricker
Since January 1, 2020, Simon Fricker is supporting the team of Reichlin Hess. With this appointment Reichlin Hess continues to grow in the areas of employment law and litigation.
Swiss Corporate Tax Reform: Federal Council adopts three new ordinances
On 13 November 2019, the Swiss Federal Council approved three ordinances in connection with the Federal Act on Tax Reform and AHV Financing (TRAF) that will enter into force on 1 January 2020. The three ordinances provide specifications regarding the credit of foreign withholding taxes, the application of the patent box regime, and the notional interest deduction on surplus equity.
Swiss tax consequences in connection with the sale of shares: Limitations of the principle of tax-free capital gains for individuals
The tax appeal court of the Canton of Zurich dealt in a recent decision with the taxation of capital gains in connection with the sale of shares by individuals and its possible treatment from a Swiss income tax perspective. In general, if individuals resident in Switzerland realize a gain from the sale of tangible assets it should not be subject to Swiss income taxes. However, a few important exceptions should be considered.
Swiss VAT: Declaration requirements for foreign enterprises generating turnover in Switzerland
The Swiss Federal Tax Authority (SFTA) has issued the final version of the VAT-Information brochure no. 22 regarding foreign enterprises.
Successful closing of seed financing round for a startup in the blockchain industry
We are proud to have supported MachinaWare AG through a successful seed financing round of CHF 1 million. As a promising blockchain startup in the Crypto Valley, MachinaWare AG will now be able to accelerate development and growth for the official launch in 2020.
Taxation of Cryptocurrencies and other Tokens: Working Paper published by the Swiss Federal Tax Administration
On 27 August 2017, the SFTA has issued a working paper regarding the treatment of cryptocurrencies and other coins or tokens based on the blockchain technology from a Swiss income tax, withholding tax and stamp duty perspective. The working paper also provides guidelines regarding the net wealth taxes imposed on a cantonal and communal level.
Swiss corporate tax reform approved; entering into force as of January 1, 2020
Following the referendum, the voters in Switzerland approved in a public vote held on May 19, 2019, the changes of the law for the corporate taxation and the financing of the old age pension fund (STAF). Special taxation regimes will be abolished and new tax relief measures introduced on cantonal and communal level.
Security Token Offering: FINMA non-action letter for a token marketplace obtained
We are pleased to have assisted in the regulatory clarification of a new security token offering in Switzerland. The token to be sold should grant the owners a participation in the future turnover of the company.
Blockchain: Report of the Swiss Federal Council
On 14 December 2018, the Federal Council presented the report of the "Blockchain / ICO" working group of the Federal Department of Finance to the public. The working group has examined the extent to which legal adjustments are to be made in Switzerland in the area of blockchain technology and distributed ledger technology (DLT).
Crypto Exchange
With the support of our experts in crypto and AML regulations we have successfully registered a new crypto exchange with a self-regulating organization in Zug, Switzerland.
Tax Reform 17 finalised
The Swiss Parliament has finalised the tax reform 17 in the final vote of September 28, 2018. The new tax law should be implemented at the beginning of the year 2020. The entering into force of the tax reform 17 is subject to a possible referendum and a popular vote.
Initial Coin Offering: FINMA non-action letter for crypto art service firm obtained
With the support of our lawyers a Zug based company engaging in the digitalizing of art obtained a non-action letter from FINMA in connection with an Initial Coin Offering (ICO).
Taxation of the Digital Economy: Developments in the EU and implications on Swiss entities
On 9 September 2018, the EU Finance Ministers decided to find an agreement about the future taxation of the digital economy in the EU until the end of the year. It is discussed to introduce a tax of 3% on the turnover of digital services and a new "digital permanent establishment".
Accelerated distribution of dividends
The Swiss Federal Tax Administration (SFTA) has recently cleared the way for the accelerated distribution of dividends from subsidiaries to the parent company and the shareholders of the parent company from a Swiss withholding tax perspective.
Value Added Tax regarding Crypto Currencies and Initial Coin Offerings
On June 21, 2018, the Swiss Federal Tax Administration SFTA published a first draft of their adjusted practice guidelines regarding the taxation of crypto currencies with respect to the value added tax (VAT).
Initial Coin Offering: Tax ruling for the issuance of an asset token obtained
Reichlin Hess obtained a tax ruling regarding the income tax treatment of an ICO regarding an asset token.
New Federal Circular No 37A regarding Taxation of Employee Participation Benefits
The Swiss Federal Tax Administration (SFTA) has published a new Circular Letter on May 4, 2018 regarding the tax treatment of participation benefits at the level of the employer.
Blockchain Taskforce Publishes Recommendations
The Blockchain Taskforce has released the White Paper with recommendations how to amend the current law to appropriately reflect the new developments in connection with the blockchain technology and Initial Coin Offerings.
AEOI and voluntary self-disclosure – the deadline expires
On January 1, 2017 the legal basis for the introduction of the automatic exchange of information (AEOI) came into force.
Initial Coin Offering: Non-action letter from FINMA for crypto payment service provider obtained
Reichlin Hess AG obtained a non-action letter from FINMA based on the updated practice according to the guidelines published on 16 February 2018 in connection with the planned ICO of a crypto payment service provider.
Tax Proposal 17: Canton of Zug welcomes the dispatch of the Federal Council
The Canton of Zug welcomes the dispatch from the Federal Council and underlines the importance of the reform to maintain legal certainty and attractiveness as a business location.
Robotics and its Effects on the Law
Artificial Intelligence is no longer science fiction. In connection with the new Blockchain-based technologies, the legal world is not only facing major challenges in particular with regard to civil and criminal law, but is also experiencing a wide range of new and thrilling legal instruments to address contemporary business issues.
Initial Coin Offering: Leading tax ruling obtained
Reichlin Hess obtained a leading tax ruling regarding the income tax treatment of an ICO regarding a utility token.
Crypto Incorporation
We are happy to assist you with the incorporation of your new Swiss legal entity (Ltd. / LLC) by using renown cryptocurrencies such as Bitcoin, or Ether.
FINMA publishes Guidelines for Initial Coin Offerings
In new guidelines published on 16 February 2018, the Swiss Financial Market Supervisory Authority sets out how it intends to apply financial market legislation in handling enquiries from ICO organisers.
Utility Token
Reichlin Hess advises on the issuance of a Utility Token from a Swiss regulatory, legal and tax perspective.
Blockchain: Code of Conduct for Initial Coin Offerings
On 8 January 2018, the Crypto Valley Association (“CVA”), a Swiss based non-profit organization, published a Code of Conduct for Initial Coin Offerings.
Tax Proposal 17: Federal council determines the cornerstones
At its meeting on 31 January 2018, the Federal Council adopted the cornerstones for the message or dispatch to the draft bill to the Parliament regarding the tax proposal 17 (TP17).
Blockchain: Crypto Valley Zug
At least since 2017, the Canton of Zug has evolved into a crypto valley. As a Zug-based commercial law firm we would like to give you a brief insight into Blockchain and crypto-related applications.
New Attorney: Christian Maeder
We are happy to welcome Christian Maeder, Attorney at Law and Certified Tax Expert, in our team! His main practice areas are Swiss and international tax law as well as FinTech and Blockchain regulations.