Reviewing and optimizing your crypto portfolio for taxes on Accointing is easy with its user-friendly platform and step-by-step guide.

Optimizing your Tax Data with Accointing by Glassnode

Make sure you have set-up all your wallets and tax settings correctly. To begin, navigate to the “Review” tab located on the left-hand side of the platform. This tab houses four sections: “Unknown currencies”, “Identify internals”, “Classify transfers”, and “Missing funds”.

First, head to the “Unknown currencies” tab and check for any coins that can’t be recognized by the platform’s database. If you are familiar with the coin in question, you can add it as a new currency. This will ensure that the platform can accurately calculate the gain or loss on the asset. If the coin is not recognized and you have never heard of it or interacted with it, it may be a scam coin. In this case, you can ask the platform to ignore it.

Next, check for any internal transactions that may have been missed. Internal transactions, which are transfers between two of your own wallets, are not taxable. The platform will flag potential internal transactions, but you should double-check that they are definitely between two of your own wallets. This will ensure that your tax bill is not higher than it needs to be.

To further optimize your portfolio for crypto taxes, you will need to review and classify any transactions that the platform couldn’t do for you. Classifications are labels that tell you why or how a transaction was made and are directly connected to how the assets are taxed. It is important to understand the tax implications of your transactions and to ensure that they are labeled correctly. 

Additionally, you can use the Missing Funds tool to find any missing transactions and make sure that your portfolio is complete. We recommend that you investigate any missing data, however, in the case that you cannot locate the right data, “Fix for me” will add a reconciliation transaction to make sure your portfolio is accurate.

By following these steps, you can stay on top of your crypto tax compliance and ensure that your portfolio is optimized for taxes. 

For additional information on filing your crypto taxes, including 1099 questions, extending your tax return, attachments and filing with multiple tax tools, check out our Crypto Tax Filing Guide 2023.

The information contained in this guide, including any supplemental materials, is for general information purposes and does not constitute financial, investment, legal or tax advice. The present content is not intended as a thorough, in-depth analysis, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. Please consult your tax advisor.

Optimizing your Crypto Tax Data with Accointing by Glassnode

Anyone who trades cryptocurrencies and has submitted a tax return before knows how much effort is involved in collecting and preparing the crypto tax data. In this regularly-updated guide, we explain how you can submit your crypto taxes in Switzerland efficiently and in time for the tax deadline.

How to File Crypto Taxes in Switzerland: 2023 Guide - Accointing

How to Declare Crypto Taxes in Switzerland?

Regardless of the crypto tax tool of your choice, Switzerland generally subjects cryptocurrency assets to wealth and income tax (if applicable) based on worldwide income and wealth tax values. One must declare cryptocurrencies in the annual tax return together with other financial assets, income, and real estate. Capital gains and losses from non-commercial trading are tax-free.

If you're using Accointing as your crypto tax software, you need to generate your crypto tax report before you can submit your crypto taxes. Make sure you have registered correctly with Accointing, made the right tax settings, and verified all your data for accuracy. Generally, you'll receive your tax return annually from the cantonal tax administration and must submit it there, which is possible online in all cantons. Each canton has a slightly different procedure and a different tax return. Below you will find an overview of the specific requirements of some cantons:

Cryptocurrencies are moveable items that can be valued for tax purposes. In the interest of a simple and easily comprehensible declaration, cryptocurrencies must be listed in the annual tax return in the form “List of securities and credit balances” (form 101.05). The code “UE other assets” must be entered in the first column. The holdings of cryptocurrencies can usually be proven with a printout of the year-end holdings in the “wallet,” i.e., the digital wallet.

Principally, crypto assets need to be declared in your tax return using code 835 (“Bargeld, Edelmetalle und übrige Vermögenswerte”). Crypto assets are subject to wealth tax (cf. § 45 para. 1 StG). Proof must be provided with a copy of the wallet at the end of the tax period or the tax liability (cf. § 54 para. 1 StG). 

Crypto assets must be declared in your tax return using form 3 (“Wertschriftenverzeichnis und Rückerstattungsantrag Verrechnungssteuer”). As with other private assets, the portfolio market value as of 31 December is decisive for their valuation.

In principle, crypto assets are subject to wealth tax in the Canton of Lucerne (§ 43 para. 1 StG). The market value as of 31 December or the end of the tax liability is decisive for the valuation. The year-end rate, according to the stock exchange used, is to be used. For cryptocurrencies without an official market value, the purchase price can be declared as an asset. The declaration is made in the list of securities as other assets. An extract from the wallet (digital wallet) must be enclosed with the declaration as evidence in the tax return.

Cryptocurrencies must be declared in the list of securities and credit balances. In the event of a change in the holdings of securities and receivables (acquisition, sale, repayment, or conversion), the date of the addition or disposal must be entered in the corresponding columns, and the bank documents must be attached.

In the canton of Zug, crypto-assets are entered in the list of securities (code 160 for crypto-asset income and code 600 for assets) in your tax return. If the cryptocurrencies are part of the business assets, the book value principle applies to them. In this case, the accounts must record price fluctuations according to commercial law principles.

Cryptocurrencies must be declared in the securities and assets register as “other assets.” Proof must be provided with a copy of the wallet. The mining of cryptocurrencies by a natural person by providing computing power against payment leads to taxable income from self-employment.

Here, you will find a list of all tax administrations in Switzerland. 

In preparing your crypto taxes, two results from the Accointing tax report are relevant: the sum of taxable asset income and the portfolio value at the end of the tax year. In the "Tax return 2022 for natural persons" form, enter the total amount of taxable asset income from cryptocurrencies in line 5.4 on page 2. You can find this information in your Accointing report on the first page under "Taxable Asset Income."

The total amount of taxable asset gains from cryptocurrencies must be entered in line 5.4 on page 2 of the "2022 tax return for natural persons" form. You can find this information in your Accointing report on the first page under "Steuerbare Vermögenserträge."

The value of your cryptocurrency holdings will be assessed based on the exchange rate published by the FTA on December 31, 2022. If no official rate is available, the value as of December 31 of the corresponding year will be determined based on the disclosed rates of a crypto platform (e.g. coinmarketcap.com). Go to line 25.6 on page 4 of the form "Other assets; further description" and enter the total value of your portfolio according to the summary on page 3 of your Accointing report.

Once you have completed the steps described above, you have successfully submitted your cryptocurrency taxes to the FTA. As long as you are considered a private investor, you have no further tax obligations in relation to cryptocurrencies.

If you have a significant amount of cryptocurrency investments, run a business, or have a complex tax situation, it would be beneficial to seek advice from an experienced tax expert. Although Accointing can simplify the process of creating a tax report, the taxation of digital assets is a complex and rapidly changing area. A qualified professional can help you master the nuances of this field and correctly classify the data for tax purposes. If you have specific questions about your tax situation, do not hesitate to contact the tax experts at BDO Switzerland.

Accointing provides a tax report containing a summary of all tax-related cryptocurrency transactions for the selected tax year in full compliance with FTA guidelines. It is available in both pdf and excel formats for convenience.

The first page of your report contains the development of assets shown at the top of the tax report. Listed are the market value of your portfolio at the beginning of the tax period (01.01.2021) and the portfolio's market value at the end of the tax period (31.12.2021). The blue tile "Gesamte Wertentwicklung" is your total performance and shows the difference between the opening balance as of 01.01.2021 and the closing balance as of 31.12.202.

The calculation of your total performance "Gesamte Wertentwicklung" can also be seen in the grey items: taxable income "Steuerbare Vermögenserträge," realized tax-free capital gains "realisierten steuerfreien Kapitalgewinne," and other changes in value "Übrigen Wertveränderungen":

The taxable income "Steuerbare Vermögenserträge" is presented by category. The details of these amounts can be found on Page 5 - taxable income.

Similarly, the realized tax-free capital gains/losses "Realisierte steuerfreie Kapitalgewinne/-verluste" are presented by category.

Other changes in value “Übrige Wertveränderungen”

This page lists all transactions that are not directly relevant for tax purposes but have an impact on the portfolio value and are therefore listed individually to contribute to the transparency of the portfolio's developments in the tax year.

This page will give you an overview of all cryptocurrencies in your portfolio. If available, we use the official rates of the FTA as price sources; otherwise, we use the data of Coinmarketcap.

Here you will find a list of all cryptocurrencies for which the official rates of the FTA are used.

Taxable Income "Steuerbare Vermögenserträge"

Here, you will find a list of all taxable income categories within your portfolio. The sum of these classifications must be declared as taxable income in the tax return. Each cantonal regulation may differ as to where or in what form the values must be declared (e.g., list of securities).

Although the FTA has yet to issue guidelines for several DeFi protocols, it is possible that many DeFi activities, such as yield farming and liquidity mining, qualify as additional income and are also subject to taxable income. You should check this with your tax advisor.

This is a detailed view of the income from margin trading and serves as proof of the total amount. Only positive amounts are transferred, i.e. a profit margin, whereby if there is a total loss, this is not deductible and is not included.

When is the deadline for filing tax returns in Switzerland?

Can I request an extension for my tax return?

Each canton has slightly different regulations, but in most cantons, an extension can be easily requested online. Usually, only the registration number and some personal information for identification are required. On this page, you can find an overview of all deadlines for tax returns in each canton for the 2022 tax year.

What is the wealth tax rate in Switzerland?

The Vermögenssteuer (wealth tax) rate and exemption vary by canton in Switzerland. Most cantons have a progressive tax rate between 0.3% and 1% for wealth, meaning higher assets incur higher tax percentages. The exemption is usually around CHF 100,000 per taxpayer. Check your canton's website for specific rates.

The information contained in this guide is for general information purposes and does not constitute financial, investment, legal, or tax advice. The present content is not intended as a thorough, in-depth an

How to File Crypto Taxes in Switzerland: 2023 Guide

In the following guide, we describe how cryptocurrency deposits and withdrawals are handled at Accointing. Please note that in Switzerland, trading gains and losses from private individuals are tax-free.

Switzerland Specific Classifications - Accointing by Glassnode

1 – Reconcile represents adjustments due to variances between imported data and actual balances. Disclosed separately in your tax report.

2 – Margin gains, losses, and fees are part of taxable investment income. If an overall profit is made, this counts as taxable investment income. However, if a loss is made in total, it is not deductible and a value of 0 is shown in the tax report. 

Switzerland Specific Classifications

In this guide, we will discuss the principles of taxation of cryptocurrencies in Switzerland. We will explore how the Swiss Federal Tax Administration (FTA) treats topics such as DeFi, NFTs, and cryptocurrencies in general, as well as how they are handled from a tax perspective.

Crypto Tax Switzerland: The Complete 2023 Guide - Accointing

How are cryptocurrencies classified for tax purposes in Switzerland?

The FTA classifies all cryptocurrencies as assets. This is based on a report by the Federal Council in 2014, which explained the legal treatment, potential risks, and economic significance of cryptocurrencies. However, cryptocurrencies are a new digital type of asset that cannot be easily compared to traditional asset classes and cannot be treated equally for tax purposes.

Is trading cryptocurrencies tax-free in Switzerland?

Gains from trading cryptocurrencies in private assets are generally treated as tax-free capital gains in Switzerland. Accordingly, capital losses incurred from crypto trading are also not tax-deductible.

However, it is important to note that the assessment and classification of trading depend on whether it is private asset management or commercial trading. Commercial activity may be considered, according to the assessment of the competent tax authority, if certain criteria are not met. Therefore, trading cryptocurrencies in Switzerland can be subject to tax under certain circumstances.

Are you taxed for HODLing crypto in Switzerland?

Holding cryptocurrencies or digital assets in Switzerland is not directly taxable. However, it does have an impact on annual wealth tax. If the total value of assets exceeds the personal exemption for wealth tax on December 31st, a small tax amount is due each year on the value of the held cryptocurrencies. The holding period of cryptocurrencies does not matter, only the inventory on December 31st is relevant.

How do you report crypto taxes in Switzerland?

In general, you will receive your tax return from the cantonal tax administration and must also submit it there. In all cantons, it is possible to fill out the tax return electronically or directly online, with each canton having slightly different instructions and submission processes. More information can be found under "Crypto Tax Filing Guide 2023 - Switzerland".

If you would like to have your tax return filled out by a professional tax advisor, you are welcome to contact the tax experts at BDO Switzerland.

Why do I need crypto tax software in Switzerland?

Yes, it is possible to use crypto tax software in Switzerland to help with tax return preparation and submission. Software can help track crypto transactions, calculate gains and losses, and prepare tax returns accordingly. As a Swiss company and expert in tax matters related to cryptocurrencies, Accointing is an excellent choice for those who want to use crypto tax software in Switzerland, along with our local partner BDO.

Trading with cryptocurrencies (not subject to taxation)

Capital gains and losses from non-commercial trading are tax-free. Capital gains tax only applies when trading as a commercial trader or as a business.

Income with cryptocurrencies (subject to taxation)

Taxable income from cryptocurrencies can take many forms and designations, and the FTA (Federal Tax Administration) does not provide guidance for many of them. Income tax is levied on cryptocurrencies when it can be assumed that the cryptocurrencies were earned. All received crypto incomes are taxed based on the market value of the received coins/tokens. This is usually also the point at which the taxpayer gains control over the asset.

Cryptocurrencies as “wealth”  (subject to taxation)

As an individual, an annual wealth tax is due, which is levied by the cantons and municipalities. This tax applies to all movable assets, such as bank deposits and securities, as well as immovable assets, including cryptocurrencies.

The value of your cryptocurrency holdings will be assessed based on the exchange rates published by the Swiss Federal Tax Administration (ESTV) as of December 31st, 2022. If an official exchange rate is not available, the value as of December 31st of the corresponding year will be determined based on the disclosed rates of a cryptocurrency platform (e.g. coinmarketcap.com).

The tax rate for wealth tax and the tax exemption threshold varies depending on the canton. Most cantons have a progressive tax rate for wealth between 0.3% and 1%, which means that individuals with higher wealth will pay a higher percentage of taxes. The tax exemption threshold for wealth tax is usually around 100,000 CHF per taxpayer. Further information on the wealth tax rates of the canton can be found here.

The principles for taxing various transactions and activities with cryptocurrencies can be summarized as follows. Where appropriate, regulations will be included for both individuals and businesses.

Gains and losses from trading cryptocurrencies in private assets generally qualify as capital gains from movable assets (assuming the underlying asset was sold and an alternative cryptocurrency was acquired as consideration). In principle, such transactions are treated as tax-free capital gains. Accordingly, capital losses from cryptocurrency trading in private assets are also not deductible for tax purposes.

Trading is then assessed and classified as either private asset management or commercial trading. A person who cumulatively meets the criteria of Circular 36 of professional securities dealers is not considered engaged in commercial activity. Once one of these criteria is no longer met, the competent tax authority may determine that commercial activity may exist.

The following criteria provide an initial indication (not an exhaustive list) of whether your activity as a trader is classified as commercial trading under Swiss tax law.

Frequency: If the activity is carried out regularly and at short intervals, this is an indication of commercial trading.

Duration: If the activity is carried out over a longer period of time, this is also an indication of commercial trading.

Trading volume: If there is a high trading volume, this may indicate commercial trading.

Profit-making intention: If the activity is carried out with the intention of making a profit, this is another indication of commercial trading.

Organization: If the activity is carried out systematically and organized, this indicates commercial trading.

Time expenditure: If a significant amount of time is spent on the activity, this may indicate commercial trading.

However, it should be noted that these criteria are not exhaustive and depend on the circumstances in each individual case, so a total assessment of all factors is necessary. Classification as commercial trading has tax consequences, as the profits earned must be taxed as income.

Mining Bitcoin or any other cryptocurrency results in taxable income, with the coins received valued at their fair market value at the time they were mined. The exact tax treatment depends on your location in Switzerland, as some cantons have thresholds at which mining is considered business income or income from self-employment, affecting tax and deduction treatment. When calculating the market value of the coins received, use the CHF value of the cryptocurrency at the time they were received.

Some cantons that set limits for mining are:

Zug: In Zug, mining is considered a commercial enterprise if the annual income exceeds CHF 100,000.

Basel-Stadt: In Basel-Stadt, mining is considered a self-employed activity if the annual income exceeds CHF 50,000.

Schwyz: In Schwyz, mining is considered a commercial activity if the annual income exceeds CHF 50,000.

However, it is important to note that the exact regulations and thresholds for mining may vary in each canton and change over time. Therefore, it is advisable to contact the responsible tax authority of the respective canton to find out about the current regulations. Here you can find a complete list with links to the different cantons.

Staking rewards are treated similarly to mining rewards and are subject to taxation at the time of receipt. However, taxation depends on various factors, such as the taxpayer's place of residence, the type and extent of staking activities, and the classification as a private investor or as self-employed trader. Here you can find a complete list with links to the different cantons.

Crypto lending is usually carried out through various DeFi protocols that connect lenders and borrowers. These platforms allow lenders to deposit their cryptocurrencies into a pool from which borrowers can borrow the desired amount. The borrower repays the loan with interest over a certain period of time, and once the loan is fully repaid, the collateral is returned to the borrower. Interest income from lending cryptocurrencies is considered taxable income and is subject to income tax based on the current market value of the cryptocurrency at the time of receipt. If you earn interest income from lending cryptocurrencies, you must report it in your tax return and pay taxes on the income earned.

According to the Swiss Federal Tax Administration (ESTV), cryptocurrencies received via airdrops are subject to income tax and are to be considered taxable capital gains. The market value of the cryptocurrencies at the time of receipt or disposal is decisive for the valuation of an airdrop. If no value is available at the time of receipt, a value of zero may be assumed.

There are no direct guidelines from the ESTV regarding hard forks. However, given that airdrops are subject to income tax, it is very likely that hard forks are also subject to income tax. This is based on the market value of the new cryptocurrency at the time of receipt, thus, the value of the new tokens at the time of the hard fork is determined.

An employee who has received bitcoins or other cryptocurrencies as wages and/or benefits should declare this as taxable income. The value of the received cryptocurrencies in Swiss francs at the time of receipt of the salary paid by the employee should be recorded on the salary statement.

Individuals who receive cryptocurrencies as part of self-employment can declare them as main or additional income. The value of the cryptocurrencies in Swiss francs at their receipt should also be recorded, just like the value of regular salaries.

In Switzerland, fees for the administration of cryptocurrencies can be deducted as administration costs for tax purposes. In some cantons, there is a flat rate for administration costs that can be deducted automatically without requiring receipts or proof. However, if the actual administration costs are higher than the flat rate, the actual costs can be deducted, provided they can be substantiated.

It is important to keep receipts and proof for all costs related to the administration of your cryptocurrencies to ensure that you can deduct the correct amounts. The exact rules and maximum amounts for the deduction of administration costs may differ from canton to canton, so it is important to check the specific regulations of the respective canton.

Income taxes are levied at three different levels:

While the tax rates at the federal level are the same throughout Switzerland, each canton has its own tax laws and tax rates. Municipalities generally adhere to the tax legislation of the canton in which they are governed, but they have the right to set their own municipal tax rate within certain parameters. Therefore, the income tax rate on your cryptocurrency can vary significantly depending on where you live and how much you earn.

The tax rates at the federal level are progressive, meaning the more you earn, the higher the tax rate. Most cantons have also introduced a progressive tax system, but some have recently introduced lump-sum taxation.

The following are the income tax rates at the federal level for the year 2023:

Purchasing Cryptocurrencies with Fiat (i.e CHF, EUR, USD) 

Purchasing crypto (or any other digital asset similar to cryptocurrencies, such as NFTs) with fiat is not a taxable event. This is true whether the crypto is purchased through a bank account or a credit card transaction. However, considering that you will have to pay taxes when you sell or "dispose" of your crypto, it is crucial to keep an accurate record of the purchase to determine the cost basis of the transaction. Fortunately, Accointing.com will automatically keep track of all this information.

The cost basis of acquired crypto = amount paid for crypto in CHF + fees for the acquisition

As long as you are considered a private investor by the FTA, purchasing crypto (or any other digital asset similar to cryptocurrencies, such as NFTs) with crypto or another digital asset is not a taxable event.

If, on the other hand, you are considered a self-employed trader, capital gains tax is applied:

Taxable gain or loss = proceeds from the sale (fair market value of acquired crypto) - cost basis of crypto given up.

Proceeds from the sale (fair market value of acquired crypto) = cost basis of acquired crypto (relevant for future dispositions)

The acquisition of the new crypto (coin, token, NFT, etc) is not itself taxable, but using another asset to purchase this is the taxable event. This is basically a barter transaction. Using crypto to purchase another crypto is the same as if you sold the first crypto at its fair market value and immediately used those funds to purchase the new asset. The first transaction would be a taxable disposition in which a gain or loss has to be recognized, and the second transaction would be an acquisition for fiat. With crypto-to-crypto, you are essentially doing both of the above in one transaction. Therefore a gain or loss has to be reported on the asset given up.

Transferring cryptocurrencies to your own wallet, whether it is a hot or cold wallet, is not a taxable transaction. Be careful - without precise classification as an internal transaction, some tax reports assume that transfers are taxable and assume a sale. At Accointing, we have decided not to make assumptions about what is internal for a user. We find possible matches for internal transfers and have them verified by the user in one of our review steps. All you need to do is confirm the proposed transactions as internal transfers, and they will be recorded as internal transfers.

Each canton has different rules and tax rates for giving away crypto assets - ranging from 2% to 36%, depending on the amount and type of assets given away. Some cantons have special provisions for gifts exempt from taxation or can be taxed at a reduced rate. For example, in some cantons, there is a tax exemption for gifts between spouses, parents, and children, or grandparents and grandchildren. In other cantons, there is a threshold for gifts below which no taxes are due.

The ESTV has not provided specific guidance on the tax deductibility of crypto donations. In Switzerland, cryptocurrencies can be used as donations to qualified charities based in Switzerland. The tax implications of cryptocurrency donations depend on various factors, such as the tax rate, the type of organization receiving the donation, and the amount of the donation. The market value of the cryptocurrencies at the time of the donation is crucial, so the current market value of the donation at the time of the donation must be determined.

If one becomes a victim of cryptocurrency fraud (scams) or if cryptocurrencies are stolen, this can have implications for the tax situation. The Swiss Federal Tax Administration (ESTV) has not issued specific guidelines regarding lost or stolen cryptocurrencies. However, as a private investor, one does not have to pay taxes on capital gains and losses. Therefore, the loss of coins would only be relevant for the valuation of the crypto portfolio for the determination of wealth tax. The lost coins, with corresponding proof, no longer count as part of the crypto portfolio and can be written off under the given circumstances. For complex issues, it is recommended to consult a tax expert in Switzerland to clarify specific questions regarding one's personal situation.

Holding cryptocurrencies or digital assets is not directly taxable. However, HODLing has an impact on the annual wealth tax. This means that if the total value of assets, including cryptocurrencies, exceeds the personal exemption limit for wealth tax as of December 31st, one pays a certain amount of tax every year on the value of the held cryptocurrencies. The holding period of the cryptocurrencies is not relevant; only the inventory as of December 31st is decisive.

Crypto Trading: Futures vs. Margin Trading

In Switzerland, profits from futures and margin trading with cryptocurrencies are treated as taxable investment income. If one makes profits with futures or margin trading, this is subject to tax. However, if one has more losses than gains from futures or margin trading at the end of the tax year, the loss from margin trading cannot be claimed in one's tax return.

Just like the acquisition of cryptocurrencies, the disposal of cryptocurrencies in Switzerland is completely tax-free as long as the ESTV considers you a private investor.

However, if you are considered a professional trader or a business, the sale or exchange of cryptocurrencies is a taxable disposal, and you must pay capital gains tax. Taxpayers must report the realized gain or loss from such transactions in their annual tax return.

What is considered a taxable disposal of cryptocurrencies for Swiss professional traders or businesses?

Selling a cryptocurrency for fiat (CHF, USD, Euro, GBP, etc.)

Selling a cryptocurrency for a stablecoin (USDT, USDC, DAI)

Exchanging one cryptocurrency for another

Exchanging a stablecoin for another stablecoin

Purchasing goods or services with cryptocurrencies

Guides & Tutorials

Optimizing your Crypto Tax Data with Accointing by Glassnode

How to File Crypto Taxes in Switzerland: 2023 Guide

Switzerland Specific Classifications

Crypto Taxes in Switzerland: The Complete 2023 Guide