The Zug blockchain haven in Switzerland, popularly known as Crypto Valley. Has passed a new law to accept state taxes in Bitcoin and Ethereum that will come into effect later this month.
The canton of Zug initially announced its plans to start accepting crypto for tax payment in September 2020. Offering the new payment option to local companies and individuals.
The 126,000 people that live in the province will be able to pay up to 100,000 CHF (around $111,300) of their taxes in Bitcoin and Ethereum. According to the Zug Canton website, residents can request this option and be emailed a link with further directions.
The town of Zug itself, with 30,000 residents, rolled out a similar crypto tax program in 2016. No partial payments will be accepted.
“As the home of the Crypto Valley, it is important to us to further promote and simplify the use of cryptocurrencies in everyday life”. Said Zug’s finance director, Heinz Tannler, when the tax initiative was announced.
Bitcoin Suisse Handles The Conversion of BTC and ETH
Bitcoin Suisse already handles the conversion of BTC and ETH to Swiss francs for the town of Zug. Transferring the amount to the local treasury. It will now handle the conversions of the cryptos for the entire area.
“This step forward for crypto adoption has been enabled by the pioneering work from the Zug cantonal tax office using the Bitcoin Suisse Crypto Payments solution. It is yet another sign of innovation in Blockchain Nation CH,” the company said.
The region has a reputation of being friendly toward cryptocurrencies, as many blockchain firms are headquartered there.
Switzerland as a whole supports digital assets as all individuals are exempt from tax on crypto profits and losses. Facebook’s digital asset project, Libra, most notably is headquartered in the country.
Zug is not the first location in Switzerland to support crypto tax payments. Zermatt, a municipality in the district in the canton of Valais. Rolled out a Bitcoin tax payment option in partnership with Bitcoin Suisse in January 2020.