The canton of Zug which is a state in the Swiss Confederation has started accepting tax payments in Bitcoin and Ether. The canton acknowledged the cryptocurrency option last year and also announced support for it.
The canton of Zug has furthermore announced that it has partnered with Bitcoin Suisse for this new incentive. Bitcoin Suisse which is a Swiss crypto company will see to the conversion of resident’s bitcoin and ether tax payments into the canton’s Swiss Francs.
How Will the Canton of Zug Handle This?
The canton has simplified the whole process. The citizens have to scan a QR code as the first step, they can then proceed to paying from their preferred crypto wallet. The maximum payment that can be processed at once is a little over CHF 100,000 (about $110,000).
The official site provides solutions to many difficulties that may bother residents on processing their payments. There are also FAQs and answers to further help residents in payment processes.
There is a video illustration on the site that simply explains ‘paying the tax bills with cryptocurrency’
Swiss and Crypto Adoptions
This innovation is not strange to Swiss city residents as bitcoin has been a legit means of paying tax in the city since 2016. This was facilitated by Bitcoin Sussie.
Other Swiss municipalities like Zermatt and Chiasso have also been supporting cryptocurrency tax payment options.
Speaking on their crypto adoption, Romy Biner-Hauser the mayor of Zermatt said;
“An innovative, pioneering spirit is one of the trademarks of Zermatt, which is why we are happy to support residents in providing them with the solutions they require.”
The adoption of crypto has been a definitive step in the canton of Zug. To erase any fear of loss of funds or errors in payments, Heinz Tannler, finance director of the Zug administration said;
“We do not take any risk with this new payment method, as we always receive the amount in Swiss Francs, even if payment is made in Bitcoin or Ether.”
Although the initiative is a welcome improvement having tested the scope in phases. The canton of zug is however still not aware of the number of residents that will be willing to use the crypto-tax payment option.
