Cryptocurrencies & Taxes - Part 2: Income Tax

Bitcoin, Ethereum, Ripple or EOS: Cryptocurrencies are becoming more and more well-known and the choice of traded cryptocurrencies is huge. But how do they affect your tax return? In the last post, we showed you how to declare cryptocurrencies in your assets. Today we will explain the impact they can have on income tax.

It's simple if your cryptocurrencies are part of your movable private assets. Then, capital gains from these are generally tax-free. Accordingly, possible losses are also not tax-deductible. If cryptocurrencies are considered business assets, the regulations about self-employment apply. Then potential capital gains are taxable and capital losses can be deducted. If salary or fringe benefits are paid out in cryptocurrencies, these must be declared on the salary statement as taxable earned income and thus are also included in the tax return. The amount of salary corresponds to the determined exchange rate value in Swiss Francs at the time of inflow. How you can determine this was shown in the last post. If you are self-employed and have received cryptocurrencies as compensation for your services, these must be declared as income from self-employment.

In the next post of our series "Cryptocurrencies & Taxes," we will explain to you when trading with cryptocurrencies is considered commercial and what further tax implications this has.‍

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