Switzerland’s Canton to Allow its Citizens to Pay Taxes in Bitcoin & Ether Starting 2021
Switzerland's canton of Zug will start allowing people to pay taxes in Bitcoin and Ether from 2021, as per the official statement.
“Tax settlement by means of crypto currency will be available to both companies and private individuals up to an amount of 100,000 Swiss francs ($109,670).”
Home to crypto firms, hedge funds, and commodity traders, the region has about 127,000 people and will be collaborating with the Zug-based broker Bitcoin Suisse AG, which converts the digital currency into local currency, francs, and transfers the amount to the state.
Zug isn’t new to accepting digital currencies; back in 2016, bitcoin payments were accepted for certain government services. Finance Director Heinz Tännler said,
“As the home of the Crypto Valley, it is important to us to further promote and simplify the use of crypto currencies in everyday life. By being able to pay tax debts with Bitcoin or Ether, we are taking a big step in this direction.”
Known for the low corporate taxes, crypto firms in Switzerland have gained a lot of traction propelled by favorable regulations.
“Everybody cares about a $0.5 trillion-market,” said Niklas Nikolajsen, founder and Chairman of Bitcoin Suisse, who first started buying BTC when it was worth less than $1.
“There’s almost nothing controversial about trading Bitcoin anymore. It’s completely mainstream.”
Bitcoin Suisse, which made a profit of 2.4 million francs last year and revenue of 20.9 million francs, recently applied for Swiss and European banking licenses. With this license, the company would be able to focus on Germany primarily, while its primary client base is also in Switzerland and Scandinavia.