The Swiss Canton Zug has announced that it will begin accepting digital currencies including BTC and ETH for tax payments beginning in February 2021.
Payments made in digital currency will have a CHF100,00 ceiling (~US$109,670), and both companies and private individuals are allowed to pay with digital currency. The payments, however, must be paid in full.
How it works
Companies and individuals in Zug who are looking to pay their taxes in BTC or ETH have to get in touch with the cantonal tax office. Subsequently, the office sends them a QR code for digital currency payment via email.
To make digital currency payments possible, the Zug Department of Finance (DoF) is working with Bitcoin Suisse. Bitcoin Suisse will be converting all digital currency payments to CHF in real-time for the Zug Department of Finance; that way, the Zug DoF does not have to worry about the risks associated with holding digital currency.
“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,” said Finance Director Heinz Tännler. “Thus, the volatility of crypto exchange rates has no influence on the final payment in Swiss francs.”
It is good that another government municipality is acknowledging digital currency and giving credence to its use as a method of payment.
Zug has been described as the fastest growing tech destination in Europe, in part, due to Switzerland’s digital currency and blockchain-friendly legislation. Switzerland is known for its supportive and progressive political system, allowing blockchain based projects to benefit from stable legislation, regulation and of course, low taxation. The country is also moving forward with an initiative that will see the deployment of blockchain technology that could be used to store a wide range of data.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.