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Nigel Browne
Director, Tax & Legal Services, PwC Switzerland
Matthias Staubli
Senior Manager, Tax & Legal Services, PwC Switzerland
On 22 March 2022, the OECD released a public consultation document regarding a new global tax transparency framework on the development of automatic information exchange systems with respect to crypto-assets, as well as proposed amendments to the Common Reporting Standard (CRS). This document was developed on the basis that crypto-assets could be used to undermine the existing international tax transparency framework, including CRS.
This new framework on the automatic exchange of information is called the Crypto-Asset Reporting Framework (CARF). It stipulates that persons who provide certain types of services relating to crypto-assets will be required to apply due-diligence procedures to identify their customers in order to report the customers’ aggregate exchanges and transfers to their respective tax administration on an annual basis.
The OECD also proposes updates to the CRS, as part of the first comprehensive review to address points raised by businesses as well as governments since its adoption. The proposal extends the scope of the CRS to cover electronic money products and Central Bank Digital Currencies, as well as new provisions on indirect investments in crypto-assets (made by means of investment entities), amendments with the aim of improving due-diligence procedures and limiting double reporting between the CRS and the newly-proposed CARF.
The OECD requests public comments with regard to the consultation document by 29 April 2022. The OECD is then expected to consider this feedback and provide an update to the G20 meeting in October 2022. Read the Crypto-Asset Reporting Framework here.
What's next
We will continue to review the document and will keep you updated on future developments. So far, crypto has not been a focus of CRS and tax transparency/reporting. This will now change with the newly-released plan from the OECD. As Switzerland is participating in the CRS framework, the new rule will also be implemented in Switzerland. The consequence of this is that in addition to banks, other financial market participants, in particular in the area of crypto services, will also be heavily impacted by this new regulation. Our experts can support you in understanding and analysing the proposed rules and the related consequences.
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Contact us
Director, Financial Services - Operational Taxes, PwC Switzerland
Tel: +41 58 792 19 23