Switzerland’s Canton Zug now accepting taxes in crypto

Zug, one of Switzerland’s cantons and the home of hedge funds, is now accepting taxes using Bitcoin (BTC) and Ethereum (ETH) from February 2021. Through a press release on September 3, the cantonal tax administration stated that it would allow settlement of tax debt using cryptocurrencies.

According to the statement, the step will be made possible through collaboration with Bitcoin Suisse, which is a pioneer crypto firm in Swiss Silicon Valley. When commenting on the positive move, Finance director Heinz Tännler, stated,

Promotion of cryptocurrencies in Canton of Zug

Switzerland is dubbed a ‘crypto nation’ and the latest announcement on acceptance of crypto in Zug will cement the country’s place as a leader in the adoption of blockchain. For citizens that will want to pay their taxes using crypto, they will need to inform the tax administration in Zug.

According to the finance director, the taxpayer will receive a QR code (through email) which they will use to pay. To cushion themselves from fluctuations due to price volatility and exchange rate, the amount will be received in Swiss Francs. Companies and individuals will be allowed to claim up to 100,000 CHF.

Collaboration with Bitcoin Suisse

To implement tax payment using crypto, the Canton of Zug finance directorate will work with Bitcoin Suisse which is a crypto firm with over seven years’ experience in crypto payments. The CEO of Bitcoin Suisse, Dr. Arthur Vayloyan, when commenting about the collaboration stated,

Increased global crypto adoption

The Canton of Zug joins the growing list of places around the world where governments have embraced cryptocurrencies. A recent study indicated that crypto adoption could grow by 30% in the next 10 years as more institutional investors get into cryptocurrencies. Bitcoin and other crypto are now readily accepted in many countries as consumer awareness on blockchain continue to grow.