The canton of Switzerland begins accepting bitcoins for tax payment

The canton of Zug, in Switzerland, demonstrates its role as a pioneer in the cryptocurrency ecosystem, becoming the first canton to offer the option of paying tax bills with Bitcoin and Ethereum to individuals and legal entities.

This is now a reality thanks to the collaboration of the local finance department with Bitcoin Suisse, a leading company in cryptocurrency services. This new means of payment is already accepted by the cantonal tax administration.

“It is important for us to further promote and simplify the use of cryptocurrencies in everyday life. By allowing the payment of taxes with Bitcoin or Ethereum, it is taking a big step in this direction, ”said Heinz Tännler CFO.

The canton of Zug as a cryptocurrency driver

Thanks to its favorable regulatory framework, a large number of companies related to the world of cryptocurrencies are located in the canton of Zug, which is why it is known as the home of the “Crypto Valley” of Switzerland.

This time the canton reaffirms its sympathy with the ecosystem by taking this important step. Since September last year, a pilot program was started to test the processes necessary to allow the payment of taxes with cryptocurrencies. Today both companies and individuals can pay up to CHF 100,000 in bitcoin of their tax contributions, without the possibility of making partial payments.

How does it work?

The process is simple, very similar to any other payment with cryptocurrencies. The difference is that taxpayers must notify the authorities of their intention to pay with cryptocurrencies once they receive their tax bill.

In response, they receive the instructions to make the payment via email. There a QR code is included, which must be scanned with the taxpayer’s preferred portfolio to confirm the payment. Once the contribution is received, the citizen is also confirmed by email.

Bitcoin Suisse key piece in the development of «Crypto Valley«

Bitcoin Suisse has been a driving force in the development of the ‘Crypto Valley’ being a linchpin for the Swiss cryptocurrency and blockchain ecosystem. Founded in 2013, it provides the necessary experience in the ecosystem to achieve this purpose.

“The combination of commercial technology and cryptocurrency payment transactions enables us to provide a good user experience for the taxpayer and offer a proven service to the canton of Zug,” commented Dr. Arthur Vayloyan, CEO of Bitcoin Suisse.

The company that is currently awaiting the granting of a banking license for Switzerland and the Principality of Liechtenstein, offers cryptocurrency payments, brokerage, custody, guaranteed loans, betting, tokenization and other premium financial services for private and institutional clients.

Compliance for paying taxes with bitcoins has already started

Other cities in the United States and Switzerland, such as Chiasso, have previously offered the possibility of paying taxes with Bitcoin, the difference is that it had been done with small amounts (up to 250 CHF). This time, Zug is serious about crypto contributions accepting up to 100,000 CHF.