Beginning 2021, residents of the Swiss region of Zug will be able to pay their taxes in Bitcoin and Ether. The Zug region is home to Switzerland’s crypto valley where many crypto startups have their headquarters. Zug is doing this to promote and simplify crypto use in everyday life.
Paying Tax in Crypto
To enable tax payment in crypto, the Zug Department of Finance will work with Bitcoin Suisse, a local
company. The local company will offer tax settlement with crypto beginning in the 2021 tax season.
According to the announcement, residents of Zug can start paying their taxes in crypto starting from
February next year.
The companies and people residing in the region will be able to use either BTC or ETH to pay their taxes
with a CHF 100,000 limit established. However, the payments in crypto will have to be for all taxes and
not just partial payments. The region’s finance department plans to organize a pilot scheme in the
coming weeks to ensure everything works fine in 2021.
Anyone that wishes to pay his or her taxes in crypto should contact the regional tax office. They will
receive a QR code to enable them to pay in crypto. According to Heinz Tännler, the Finance Director of
the region, they will not accept crypto directly. Instead, payments will be received in Swiss francs even
when people opt to pay using crypto.
About Bitcoin Suisse
Bitcoin Suisse will be the company responsible for receiving all payments made in crypto. The company
was created in 2013 and operates as a regulated Swiss financial intermediary. It offers custody, prime
brokerage, crypto payments, staking, collateralized loans, and other financial services within the
crypto sector. Its services are available to institutional and private clients. Bitcoin Suisse is currently
working on getting a banking license in Liechtenstein and Switzerland.
Crypto is becoming quite popular in Switzerland. The country is home to some of the biggest crypto
companies in the world including the Libra Association, the organization behind the Facebook Libra coin. Zermatt a Swiss municipality already accepts Bitcoin for government services including paying for local taxes. The program started in January 2020.