Canton of Zug, member states of the Swiss Confederation, is all set to accept Bitcoin (BTC) and Ether (ETH) for tax payments. This is set to be accepted starting next year. This step will also accelerate the crypto adoption across the country.
According to the announcement by the administration of Canton of Zug, the companies and individuals will be able to pay their taxes using cryptocurrency by the starting of February 2021. Both Bitcoin and Ether will be accepted for payments for up to CHF 100,000.
Canton of Zug Finance Department Collaborated with Bitcoin Suisse
The Department of Finance of the canton of Zug has also collaborated with Bitcoin Suisse for this initiative that the administration has been planning. Bitcoin Suisse will be converting the BTC and ETH tax payments of the users into francs.
Heinz Tannler, the finance director of the Zug administration, has said that the agency does not want to take risks with this new payment method. The department has always received payments in Swiss Francs and that is why Bitcoin Suisse will be converting the BTC and ETH payments.
The Pilot Test Will Take Place for This Initiative
It has been announced by the administration of Canton of Zug that the pilot test will take place in the next few weeks for this initiative. It is also specified that whoever wishes to pay the taxes using cryptocurrency can contact the cantonal tax office. The office will be providing the QR code for payment through emails to all those who wish to make crypto payments. The main purpose of this pilot test is to examine how people are going to respond to this new tax payment system.
Zug city has been accepting tax payments in Bitcoin since 2016 through Bitcoin Suisse only. Along with Zug, other Swiss municipalities including Zermatt and Chiasso also accept smaller tax payments in Bitcoin.