In Switzerland, all residents of the canton of Zug can now pay their taxes using cryptocurrencies, including Bitcoin (BTC) and Ether (ETH).
Zug takes Bitcoin to the next level
According to the press release from the administration of the canton of Zug, this payment option will be available from February 2021. This is the result of collaboration with Bitcoin Switzerland, a regulated financial intermediary is a real pioneer of the Swiss Crypto Valley .
With this approach, the canton of Zug once again confirms its role as an innovator in the cryptocurrency and blockchain industry. Indeed, Zug becomes the first Swiss canton where taxes can be paid with cryptocurrencies.
This new means of payment for the 130,000 inhabitants of the canton had already been the subject of a pilot project since 2016, but payment in Bitcoin Trader was limited to taxes of less than 200 Swiss francs (185 euros).
After the success of the pilot project, the administration moves to the next level. Businesses and individuals will be able to pay their taxes using cryptocurrency for a maximum amount of 100,000 Swiss francs (92,800 euros). Partial payments will not be accepted.
“As the birthplace of Crypto Valley, it is important for us to further promote and simplify the use of cryptocurrencies in everyday life. By making it possible to pay taxes with Bitcoin or Ether, we are taking a big step in that direction, ”said canton chief financial officer Heinz Tännler.
A collaboration with Bitcoin Suisse
To be able to offer a tax settlement with cryptocurrencies, the Zug Finance Department calls on Bitcoin Switzerland. Taxpayers who wish to pay their taxes with cryptocurrencies should contact the cantonal tax administration. They will then receive a QR code by email, necessary for payment.
“We are not taking any risk with this new payment method, because we always receive the amount in Swiss francs, even if the payment is made in Bitcoin or Ether,” said Heinz Tännler.
Therefore, the volatility of crypto-asset prices has no influence on the final payment in Swiss francs that the tax authorities receive.
Founded in 2013, Bitcoin Suisse greatly contributes to the adoption of Bitcoin and other cryptocurrencies throughout Switzerland. It acts as an intermediary for the majority of services related to cryptocurrencies, both public and private.
“The combination of trading technology and payment transactions with cryptocurrencies allows us to provide a good user experience for the taxpayer and to offer a proven service to the Canton of Zug,” added Dr Arthur Vayloyan, CEO of Bitcoin Switzerland.
Besides the canton of Zug, the city of Zermatt in southern Switzerland also accepts Bitcoin for the payment of taxes. The option offered to the 6,000 inhabitants of the municipality was rolled out in January 2020, again thanks to a collaboration with Bitcoin Switzerland.
Switzerland still impresses as much for its growing adoption of Bitcoin and cryptocurrencies in general. Undeniable pioneer on a European scale for this new industry, Switzerland is undeniably on the way to a crypto-nation.