Switzerland’s Canton Zug now accepting taxes in crypto
- From February 2021, citizens will be allowed to pay tax debt using Bitcoin and Ether.
- Citizens and companies in Zug can claim up to 100,000 CHF in tax using crypto.
- The financial directorate of Canton of Zug collaborates with Bitcoin Suisse to implement the crypto payments.
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,
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“As the home of the Crypto Valley, it is important to us to further promote and simplify the use of cryptocurrencies in everyday life. We can make one by being able to pay tax debts with Bitcoin or Ether big step in this direction. “
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,
“The combination of trading technology and payment transactions with cryptocurrencies enables us to offer the taxpayer a good user experience and to offer the canton of Zug a mature service.” Bitcoin Suisse has significantly shaped the crypto and blockchain ecosystem in Switzerland and was a driving force in the development of the “Crypto Valley” and the “Crypto Nation Switzerland”.
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.