TL;DR Breakdown
- The Canton of Zug now accepts Bitcoin and Ether as payment options for taxes.
- The resident can pay up to $110,000 using cryptocurrencies.
After revealing the plan last year, the Switzerland Canton of Zug has started accepting cryptocurrencies from residents for taxes. Such a development would encourage people to adopt digital currencies for payment of other services within the jurisdiction. Authorities in the city of Miami, United States, are also considering allowing local residents to pay their taxes and other services using digital currencies like Bitcoin (BTC).
Swiss Canton of Zug supports tax payment in crypto
According to the announcement on Thursday, residents in the Canton of Zug can choose to pay their taxes now using the two largest digital currencies, which are Bitcoin and Ether. The authorities partnered with Bitcoin Suisse, a crypto-financial services pioneer in Switzerland, to receive the payments in cryptocurrencies. The local government of the Canton of Zug may not be holding the Bitcoin and Ether paid to them.
All the cryptocurrencies will be converted by Bitcoin Suisse back to the fiat currency, Swiss Francs, and transferred to them. Residents can pay a maximum of CHF 100,000 (about $110,000) using the supported cryptocurrencies. The processing of paying taxes with cryptocurrencies in the Canton of Zug was made easy, as residents can choose to pay through their preferred crypto wallets by scanning a QR code.
Swiss: a crypto-friendly country
It’s worth mentioning that Switzerland is one of the top countries with a friendly regulatory stance on cryptocurrencies. Many crypto companies and products have been developed from the region, including 21Shares, an industry-leading crypto ETP issuer. Meanwhile, the Canton of Zug isn’t the first Swiss region to accept tax payments in cryptocurrencies. Already, the municipalities of Zermatt and Chiasso announced a similar development.
