SWITZERLAND Law and Practice Contributed by: Lukas Morscher, Lukas Staub and Jil Eichenberger, Lenz & Staehelin
G20 Two-Pillar Solution that will address the tax challenges arising from the digitalisation of the economy. Pillar Two intends to prevent multi - national groups from shifting profits to low-tax jurisdictions through the global introduction of a 15% minimum corporate tax rate for multina - tional groups with an annual consolidated rev - enue in excess of EUR750 million. Managing tax compliance in Switzerland requires a comprehensive understanding of Switzerland’s various tax types and decentralised tax system, where federal, cantonal and municipal authori - ties impose taxes under different regulations and by applying different procedures. 1.3 Taxation of Digital Advertising No particular rules apply and the general Swiss tax regime is relevant (see 1.2 Digital Economy Taxation ). 1.4 Consumer Protection Switzerland does not have specific consumer protection laws for digital goods and services. Instead, general rules such as the UCA, liability rules, the Swiss DPA and the CO apply (see 1.1 Key Challenges ). 1.5 The Role of Blockchain in the Digital Economy Cryptocurrency and distributed ledger technolo - gies (DLT), including blockchain, are transform - ing Switzerland’s TMT sector by driving decen - tralisation, secure transactions and innovative business models. Notable examples include the adoption of cryptocurrency for tax payments by many municipal and cantonal governments, which, since 2024 has also included the city of Lugano. The Swiss National Bank’s Project Hel - vetia piloting the Central Bank Digital Currency is also ongoing and UBS’s successful piloting
of the blockchain-based payment system UBS Digital Cash was carried out in November 2024. The legal challenges presented by cryptocurren - cy and blockchain technologies in Switzerland include the difficulty of applying traditional legal concepts such as know your customer (KYC) and anti-money laundering (AML) principles in a decentralised and often anonymous environ - ment. These technologies also pose questions around liability, intellectual property and data protection, as they enable rapid and borderless transactions that can be hard to trace and regu - late. On the other hand, the opportunities include the potential for innovation and economic growth, as the Swiss legal framework is generally support - ive and flexible, allowing new financial products and services to be developed. Switzerland’s regulatory framework reflects its commitment to fostering blockchain innovation while ensuring regulatory clarity. In 2018, the Swiss Financial Market Supervisory Authority (the “FINMA”) was one of the first regulatory authorities to publish guidelines on initial coin offerings (ICOs), classifying tokens based on their function and transferability into payment, utility or asset tokens. In September 2020, the Swiss Parliament adopt - ed the Federal Act on the Adaption of Federal Law to Developments in Distributed Ledger Technology (the “DLT Act”) which amended several federal laws to enhance Switzerland’s position as a leading, innovative and sustainable hub for DLT-related activities. Key amendments included the following.
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