- Switzerland’s Federal Council has recently decided to delay the implementation of its Crypto-Asset Reporting Framework (CARF) rules.
- The move aims to firm up its list of participating countries and ensure a smooth transition.
CARF Effectivity and Implementation
The Swiss Federal Council, alongside the State Secretariat for International Finance, announced on Wednesday, following a meeting, that it has already approved the amendment of the Ordinance on the International Automatic Exchange of Information in Tax Matters (AEOI Ordinance). Besides enhancements to tax provisions, the revisions include updates to the Common Reporting Standard (CRS) for financial information and the expansion of the CARF.
The law will still take effect on January 1, 2026. However, its enforcement will not be until next year.
Participants in the New Reporting Standards
According to the Federal Council, the postponement aims to provide Switzerland with more time to finalize the list of countries with which it intends to exchange data. The National Council’s Economic Affairs and Taxation Committee (EATC) arrived at this decision after a meeting on November 3.
The following countries have already committed to part of the upcoming reporting framework based on the Organisation for Economic Co-operation and Development’s (OECD) report last week:
2027
Austria, Belgium, Brazil, Bulgaria, Cayman Islands, Colombia, Croatia, Czechia, Denmark, Estonia, Faroe Islands, Finland, France, Germany, Gibraltar, Greece, Guernsey, Hungary, Iceland, Indonesia, Ireland, Isle of Man, Israel, Italy, Japan, Jersey, Kazakhstan, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, San Marino, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Uganda, and United Kingdom
2028
Australia, Azerbaijan, Bahamas, Bahrain, Barbados, Belize, Bermuda, British Virgin Islands, Canada, Costa Rica, Cyprus, Hong Kong, Kenya, Malaysia, Mauritius, Mexico, Mongolia, Nigeria, Panama, Philippines, Saint Vincent and the Grenadines, Seychelles, Singapore, Switzerland, Thailand, Türkiye, and United Arab Emirates
2029
United States
Under Consideration/Negotiations
Argentina, El Salvador, India, and Vietnam
Criticisms on CARF
The CARF got its backing from the OECD in 2022. Its goal is to streamline and standardize crypto tax reporting in line with international standards.
Over three years since the crafting of the initiative, the framework has garnered a mix of widespread support and criticism. The negative feedback further gained traction due to ongoing delays.
According to Bitget, the postponements highlight the administrative difficulties in finalizing international cooperation agreements. Additionally, many market participants warned about the possible operational impact of the state of uncertainty on businesses and their investors. It could also curtail innovations in the sector.
Meanwhile, Switzerland has notably introduced measures to ease compliance burdens to mitigate the potentially disruptive impact of the new framework on the market.
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