This Swiss Canton Just Made it Legal to Pay Taxes in Bitcoin and Ether
Zug was the first Swiss canton to accept payments in Bitcoin for fees related to resident registration or company registrations. The Canton also pioneered the use of Bitcoin as an in-kind capital contribution to companies.
In recent years the region has become known as Crypto-Valley and become a key hub for crypto and blockchain companies.
And as of February 2021, tax residents in the canton of Zug can now also pay their taxes in Bitcoin or Ether.
According to the Finance Department of the Canton of Zug, tax settlement by cryptocurrency will be possible for both companies and private individuals up to CHF 100,000. To make this solution available to taxpayers, the finance department has partnered with Bitcoin Suisse AG, a Zug-based crypto financial services provider.
Payments in cryptocurrencies are made through Bitcoin Suisse and settled in Swiss francs with the canton’s Finance Department, which will not assume the risk of price volatility. Bitcoin Suisse assumes the price risk but also benefits from potential upside from price appreciation. Interested parties can get in touch with the Finance Department to receive a QR code to make a crypto transfer.
Whether the canton of Zug will also be the first to invest in collected crypto assets as such remains to be seen.