This month, Swiss tax authorities confirmed that the BlockState STO would only be subject to security taxes much to the delight of company officials. The ruling sheds some light on the developing Swiss STO market. In the past, investors have complained of a severe lack of transparency in the sector. Additionally, the decision represents the first time in history the Swiss authority has made a ruling regarding an STO’s tax classification.
BlockState Awaits Swiss Regulators
BlockState is an enterprise-level tokenization platform. The platform provides businesses with end-to-end STO guidance, solutions, and technology. Notably, the company specializes in non-bankable assets such as real estate, or debt-equity. Also, the firm is a member of the International Token Standardization Association (ITSA).
BlockState STO
Round one of the BlockState STO officially launched on June 18, 2019. The company succeeded in securing €2 million to further its proprietary token issuance platform. Since then, BlockState has awaited clarification on its tax classification as it planned future crowdfunding campaigns.
BlockState via Homepage
Swiss regulators responded to BlockState this month with an official ruling. This letter declared that the company’s STO falls under the normal securities offerings classification. This is a big break for the Swiss STO market as it means companies like BlockState don’t need to worry about Profit and Value Added Tax (VAT).
Company’s pay profit taxes on earnings claimed in most instances. Whereas, VAT is a consumption tax placed on a product throughout its development. Basically, VAT taxes accumulate at each stage of the supply chain, whenever more value adds to the product.
BlockState Experience
Interestingly, this project was not BlockState’s first STO. Earlier in the year, the company partnered with one of the EU’s largest music promotion firms – Streetlife International to host an event. The company’s STO started on July 1 and is scheduled for completion on August 31, 2019.
BlockState’s Future
BlockState seeks to be the EU’s leading tokenization platform. In order to accomplish this task, the company positioned for success. Importantly, the firm is based in Switzerland. Swiss regulators are big supporters of blockchain technology, and regulators are keen to assist in the development of the Swiss blockchain sector.
Swiss STOs See Success
A recent report shows that all the hard work Swiss regulators have put into developing the market pays off. The study found that companies that host an STO in Switzerland have more success than any other country in the world. Malta, the Cayman Islands, and Singapore were the next countries to make the top of the list. Interestingly, the US was fifth on the list.
Swiss Regulators Keep it Moving
Now that the Swiss market has a stronger regulatory framework in place, you can expect to see more tokenization platforms move operations to the country. Swiss regulators are keen to the fact that they reside at the financial epicenter of the world, and they intend to keep it that way as the economy digitizes in the coming years.
The post Swiss Tax Authority Clarifies STO Taxation – BlockState appeared first on Securities.io.
source https://www.tokentalk.co/Securities/swiss-tax-authority-clarifies-sto-taxation-blockstate-5d65de412acedc681ba2ef37
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