The Swiss canton of Zug will accept Bitcoin and Ethereum for tax payments from 2021
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| The Swiss canton of Zug will accept Bitcoin and Ethereum for tax payments from 2021 |
From 2021, the canton of Zug in Switzerland will be able to pay private individuals and companies their taxes with cryptocurrencies such as Bitcoin and Ether.
Zug is one of the 26 cantons (member states) of Switzerland. The state is located in Central Switzerland and Zug is often referred to as the Crypto Valley.
The new use case for cryptocurrencies
The authorities responsible for the cantonal administration of Zug have decided to follow several companies that accept cryptocurrency as a payment option. Hence, the authorities will allow citizens to pay taxes in Bitcoin and Ethereum as both are the largest cryptocurrencies on the market. Traditionally, Zug authorities have accepted tax payments in fiat currencies, but they intend to add a new payment option to accept taxes in Bitcoin and Ethereum.
From 2021, Zug would be the first Swiss canton to offer private individuals and companies the opportunity to pay their tax debts using cryptocurrency. However, they could pay up to 100,000 francs.
A pilot project will be carried out in the coming weeks to test the necessary processes for the new initiative in Zug.
Taxpayers who have decided to pay their bills with cryptocurrencies should notify the tax administration in advance. You would then receive the QR code (sent via email) required for these payments.
Heinz Tanner, CFO of Zug, said that the canton of Zug, home of the Crypto Valley, wants to continue promoting the cryptocurrency and making it easier for people to use. He mentioned that accepting cryptocurrency tax payments was an important milestone in this regard.
According to the report, the sharp fluctuation in the price of Bitcoin and Ethereum would not be a problem as tax payments in cryptocurrencies would be calculated in CHF (Swiss Francs), one of the most stable currencies in the world. The world in terms of exchange rates.
From 2021, Zug would be the first Swiss canton to offer private individuals and companies the opportunity to pay their tax debts using cryptocurrency. However, they could pay up to 100,000 francs.
A pilot project will be carried out in the coming weeks to test the necessary processes for the new initiative in Zug.
Taxpayers who have decided to pay their bills with cryptocurrencies should notify the tax administration in advance. You would then receive the QR code (sent via email) required for these payments.
Heinz Tanner, CFO of Zug, said that the canton of Zug, home of the Crypto Valley, wants to continue promoting the cryptocurrency and making it easier for people to use. He mentioned that accepting cryptocurrency tax payments was an important milestone in this regard.
According to the report, the sharp fluctuation in the price of Bitcoin and Ethereum would not be a problem as tax payments in cryptocurrencies would be calculated in CHF (Swiss Francs), one of the most stable currencies in the world. The world in terms of exchange rates.
Silicon Valley of Switzerland
The canton of Zug, generally recognized as the Crypto Valley of Switzerland, is home to several crypto companies and fintech startups. The location is one of the main options for these types of companies dealing with global blockchain and digital currency as it is a tax-efficient system, favorable political, economic, and technological environment, access to research centers, and major companies in the area. The community's ability to nurture small startups, as well as the ease with which the valley adapts to modern business models, has drawn entrepreneurs and skilled workers from around the world.
Blockchain startups and startups don't have to deal with strict regulations against cryptocurrencies as the Swiss government is open to support innovations in this area. Switzerland has a predictable and stable decentralized system, an important environment for developing blockchain-based projects that takes advantage of the country's low-tax and business-friendly regulations.
Blockchain startups and startups don't have to deal with strict regulations against cryptocurrencies as the Swiss government is open to support innovations in this area. Switzerland has a predictable and stable decentralized system, an important environment for developing blockchain-based projects that takes advantage of the country's low-tax and business-friendly regulations.