The consulting firm PwC has investigated how clear the taxation of crypto assets is in various countries. Liechtenstein was ranked in first place globally. Switzerland was also ranked towards the top of the standings.
Investments in crypto assets are gaining ever more traction. As part of a Crypto Tax Report, the consulting firm PwC has now looked into the tax frameworks for crypto assets in various countries. According to the findings of this report, Liechtenstein offers the clearest taxation rules in relation to crypto assets. Australia, Malta, Germany, Singapore, Switzerland and Hong Kong follow behind Liechtenstein in the rankings.
The individual countries were assessed on the basis of 19 criteria. All of these aim to make the taxation of crypto assets understandable. In Liechtenstein, there are no specific rules in force for the taxation of digital assets. However, the taxation of such assets is derived from existing tax regulations. The report also highlights the blockchain law introduced in Liechtenstein in January 2020. In so doing, the principality created a legal basis for the token economy. However, the law did not entail any legislative changes to tax regulations.
With regard to Switzerland, the guidelines developed by the tax authorities concerning the taxation of digital assets are highlighted. In addition, the tax assessment of the most common tokens for tax purposes is published annually.
The crypto sector is developing at a particularly rapid pace and many countries will struggle to keep up in regulatory terms, PwC emphasizes in its report. The consulting firm has identified room for improvement in the areas of DeFi (decentralized finance) transactions, non-fungible tokens (NFTs) and the tax implications for decentralized autonomous organizations (DAOs) in particular.
