The canton of Zug administration announced the news on Thursday, saying that beginning February 2021, companies and individuals will be able to pay their taxes in the two major cryptocurrencies, bitcoin and ether of up to CHF 100,000 ($110,000). The Zug Department of Finance has collaborated with Bitcoin Suisse for the initiative, meaning the Swiss-based crypto firm will convert users’ BTC and ETH tax payments into francs for the agency.
A pilot project would be launched in the coming weeks.
The Zug Department of Finance has collaborated with Bitcoin Suisse for the initiative, meaning the Swiss crypto firm will convert users’ BTC and ETH tax payments into francs for the agency. Heinz Tannler, finance director of the Zug administration, said that they do not risk this new payment method, as we always receive the amount in Swiss Francs, even if payment is made in Bitcoin or Ether. A pilot project will take place to test the new initiative in the coming weeks, Heinz Tannler revealed. He also said that those who wish to pay taxes with cryptocurrencies could contact the cantonal tax office. Taxpayers will then receive the necessary QR code for payment, mostly via email, reported Sahil Kohli.
The Swiss municipality of Zermatt lets residents pay taxes in crypto.
The Swiss municipality of Zermatt had earlier allowed its residents to pay taxes in cryptocurrencies. The new payment option is being offered via crypto financial services firm Bitcoin Suisse. Using Bitcoin Suisse’s point-of-sale solution, installed in the Zermatt town hall, residents can pay local taxes in bitcoin. Taxpayers have to apply to the Zermatt Tax Office for a crypto payment solution for online payments. Taxes paid in bitcoin are converted into Swiss francs by Bitcoin Suisse and be transferred to the municipality’s bank account, per the announcement.