Digital Tax

Digital Business Models, Crypto Assets, Token, ICO, FinTech, Blockchain

Your goals

Digitization and blockchain technology are revolutionizing the economy. The changed business models raise new challenges for entrepreneurs, accountants, consultants and authorities due to the automated or decentralized processing of transactions. However, the correct tax classification of digital transactions is not that simple. Both technology and tax law raise more complex issues than one might expect at first glance: Where do the profits of companies with digital business models arise? Where are the profits taxed? And where are the companies even located?

The OECD, the G20 and the EU are therefore all striving to impose a «digital tax» on companies where the consumers are - and not where the companies have their headquarters. To this end, the tax system is to establish «digital permanent establishments» in the long term. Until global or regional solutions are found, countries such as France, Italy, Spain, Austria or the UK are working on local regulations.

Transactions with crypto assets and tokens are also still associated with many uncertainties under civil and tax law. Based on the legal qualification as ownership of a digital information unit (or functional equivalence), they are probably considered to be monetary rights to an asset under tax law, which belong at least to the net wealth of the Swiss taxpayer. A correct declaration of assets and possible capital gains is therefore essential.

Our services

We are one of the pioneers in the legal and tax analysis of digital business models, blockchain-based transactions, tokens and ICOs. Our clients from the digital or fintech industry range from renowned and international companies to some of the world's most innovative start-ups, (randomly) wealthy crypto enthusiasts and professional investors.

Our offer is therefore very diverse:

  • General advice on crypto assets and tokens
  • Tax declarations, voluntary declarations and controversial procedures
  • Distinction between private asset management and business activity
  • Assessment of variable salary components (for example, in employee plans) 
  • Advice on questions of tax residency, residence decisions and inter-cantonal and international tax allocations 
  • Treatment of and accounting for ICOs / TGEs
  • VAT qualification of digital transactions 
  • International developments in the field of «digital tax»

MME Integrated Approach

Whether in development, brokerage or investment in the digital or fintech industry - we understand the challenges you will be faced with. We have broad experience in supporting clients in all areas of industry. New technologies like Blockchain (Distributed Ledger Technology | "DLT") are part of our daily work. This ensures that our legal expertise is based on a sound technical understanding of the technology underlying our clients' business models.

We have created an interdisciplinary group of experts from the fields of technology, banking, corporate law, distribution, taxes and anti-money laundering, who will advise you in the implementation of your projects and develop needs-based solutions for you.

Our tax experts are in close contact with the tax authorities (e.g. Cantons, withholding tax or value added tax), publish on the latest topics and are decisively involved in the development of the relevant tax practice.

Your team

Contact

In need of legal, tax or compliance advice? We look forward to contacting you.