Reports today have informed that Switzerland Canton of Zug is expanding its support for cryptocurrencies, as residents and companies in the region can choose to pay more taxes with Bitcoin (BTC), including Ether (ETH) by next year. This is not the first time that the local authorities are letting residents pay taxes with Bitcoin and the Zug is also not the only region supporting crypto payments.
Zug residents pay taxes with Bitcoin
As Swissinfo reported on Thursday, Zug, which is often referred to as the heart of Switzerland’s “Crypto Valley,” initially began supporting payment of taxes with Bitcoin about four years ago. However, the residents were only limited to pay CHF200 ($220) using the cryptocurrency at that time.
Starting in February 2021, Zug authorities will be lowering the barrier to enable companies and individuals to pay their taxes in Bitcoin and Ether up to $109,888 (CHF100,000). The huge lift follows the partnership between Zug authorities and the local digital currency broker, Bitcoin Suisse.
Heinz Tännler, Zug’s finance director opined that the canton will not be engaging in any risk associated with holding cryptocurrencies. He explained that the authorities will only receive the Swiss francs equivalent of any cryptocurrency paid to them. Bitcoin Suisse will be responsible for receiving and converting the cryptos to the fiat currency.
Zug: the heart of Swiss’s Crypto Valley
“As the home of the Crypto Valley, it is important for us to further promote and simplify the use of cryptocurrencies in everyday life.”
Switzerland’s government has been showing supportive interest in digital currencies. Meanwhile, Zug is not the only region that is supporting tax payments in crypto. Recently, Zermatt announced that its residents can pay taxes with Bitcoin without any limitation.