Swiss Canton of Zug Accepts Crypto For Tax Payments

Swiss Canton of Zug Accepts Crypto For Tax Payments

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One of the Swiss Confederation member states, the Canton of Zug, has begun accepting cryptocurrencies (Bitcoin and Ether) as tax payments starting this week.

Zug has been labelled the ‘crypto valley’ of Swiss over their undying faith and adherence to crypto regulations. In September last year, the Zug announced their support for crypto tax payments, and they promised to actualize it come February 2021.

True to their promise, the Canton of Zug has partnered with a Swiss crypto firm-Bitcoin Suisse, for the initiative. The firm will be responsible for converting paid BTC and ETH tax payments to local currency- Swiss Francs as the laws require.

This new age of crypto tax is not new in Canton. Zug City, the capital of Canton, has been accepting crypto tax payments since 2016 and via Bitcoin Suisse as well. Smaller Swiss Municipalities (Zermatt and Chiasso) also accept crypto tax payments but for minor taxpayers.

Is this a long Term Solution?

As of now, the odds of how this will play out are a little bit uncertain. Inasmuch as the process of paying taxes in cryptocurrencies appears simple and straightforward,  there is unclear just how many people will subscribe to this.

Given the volatility of the market, crypto holders would prefer to hold their coins as opposed to transacting with them. BTC and Ether prices have kept on skyrocketing progressively in the last few weeks alone. Bitcoin currently trades at $52,000 and Ethereum at about $1,900.

How to Make Tax Payments in Crypto

Now that the Swiss Canton of Zug Accepts Crypto For Tax Payments, the next big question is exactly how practical and usable is this technology?

The process feels relatively simple. Residents willing to pay their taxes in crypto will have to send a request via the Zug Canton website. A link will later be sent, taking them to the crypto payment page. They will be required to scan a provided QR code then proceed to pay from their wallet of choice.

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