Tax Treatment of Cryptocurrencies - Part 2: Companies

Cryptocurrencies are created and managed completely decentralized. The state basically only comes into contact with them when it comes to their taxation. But there are still many questions.

Taxation for Businesses

‍In contrast to the taxation of cryptocurrencies for individuals, for businesses, due to the principle of relevance, the central issue is how cryptocurrencies are recorded in the books. Currently, there are no official rules on how this should be done. To date, neither the Swiss Code of Obligations (OR), Swiss-GAAP-FER, US-GAAP, nor international standards (IFRS) provide a finite answer. Specifically, five possibilities come into consideration: recording as cash, as receivable, as securities, as inventory, or as intangible assets. As previously explained in another article, only recording as securities or, under certain circumstances, as inventory makes sense. IFRS currently tends to classify pure cryptocurrencies like Bitcoin on the balance sheet as intangible assets. However, categorizing them as securities or possibly inventory is much closer to reality.

‍Open Questions

‍There has been increasing discussion about cryptocurrencies recently. In this context, the Swiss Federal Tax Administration (ESTV) and most cantons have also spoken up about the taxation of cryptocurrencies. However, there are still many questions waiting to be answered. This is particularly the case when the cryptocurrency possesses more than just a basic payment function. If this is the case, it is best to seek a discussion with the tax authority and/or consult a tax advisor beforehand.

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