Bitcoin Will Be Accepted for Tax Payments in Swiss Canton Zug Next Year
Bitcoin and ether can be used to pay taxes in the Swiss Canton of Zug starting next tax season. Zug’s crypto valley is home to many cryptocurrency businesses, and by accepting bitcoin and ether for tax payments, the canton aims to “promote and simplify the use of cryptocurrencies in everyday life.”
Pay Taxes With Bitcoin
Switzerland’s Canton of Zug announced Thursday that it will start accepting cryptocurrency for tax payments. The Zug Department of Finance is collaborating with local company Bitcoin Suisse to offer tax settlement with cryptocurrencies, starting in the upcoming tax season which begins in February next year. The announcement details:
Beginning in 2021, taxes in the Canton of Zug can be paid using the cryptocurrencies bitcoin and ether.
Companies and private individuals can use BTC or ETH to pay their tax bills of up to CHF 100,000 ($109,900). Partial payments are not accepted. A pilot will take place in the coming weeks to ensure that everything is ready for the upcoming tax season.
Anyone wanting to pay their tax bills with cryptocurrencies may contact the cantonal tax office. They will be provided with the QR code for payment. Zug’s Finance Director Heinz Tännler clarified: “We do not take any risk with this new payment method, as we always receive the amount in Swiss francs, even if payment is made in bitcoin or ether.”
Founded in 2013, Bitcoin Suisse is a regulated Swiss financial intermediary that offers prime brokerage, custody, crypto payments, collateralized loans, staking, and other crypto-financial services for private and institutional clients. The company is currently in the licensing phase for the Swiss and Liechtenstein banking licenses.
Director Tännler opined:
As the home of the Crypto Valley, it is important to us to further promote and simplify the use of cryptocurrencies in everyday life. By enabling the payment of taxes with bitcoin or ether, we are taking a big step in this direction.
In January, Zermatt, a Swiss municipality known for its ski resort, announced that it started accepting bitcoin for government services, including payment for local taxes. Meanwhile, the Chiasso municipality started accepting bitcoin for tax payments since January 2018.
Do you think all governments should accept bitcoin for taxes? Let us know in the comments section below.
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