The Swiss Confederation postpones the effective implementation of CARF rules for crypto data exchange.
Switzerland has decided to delay the application of rules that would allow the automatic sharing of crypto account data with foreign tax authorities. The postponement has been set at least until 2027, although the regulatory framework will formally come into force as scheduled on January 1.
On November 26, the Swiss Federal Council and the State Secretariat for International Financial Matters announced that the Crypto-Asset Reporting Framework (CARF) rules will be incorporated into national legislation from January 1, but their practical application will be delayed by at least one year.
The official reason for the delay concerns the suspension of discussions regarding partner countries with which Switzerland intends to share data under CARF. The Swiss government’s tax committee has halted talks on selecting the states to initiate information exchange with.
CARF was approved by the Organisation for Economic Co-operation and Development (OECD) in 2022 as part of a global initiative to combat tax evasion through exchanges. Its goal is to allow partner governments to share data on the crypto accounts of their citizens.
The Swiss government’s announcement also highlighted a series of changes to local crypto tax reporting regulations, along with transitional provisions aimed at facilitating compliance for domestic crypto companies with CARF rules.
According to OECD documents, 75 countries, including Switzerland, have committed to implementing CARF over the next two to four years. Countries that have not yet signed the agreement include Argentina, El Salvador, Vietnam, and India.
The U.S. White House has also recently reviewed a proposal from the Internal Revenue Service to join CARF, as part of an initiative to impose stricter rules on reporting crypto capital gains for American taxpayers using foreign exchanges.
