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As cryptocurrencies continue to gain widespread adoption globally, the Swiss canton of Zug has officially rolled out the option that enables taxpayers, including citizens and local businesses, to pay taxes in bitcoin (BTC) or ether (ETH).
As announced yesterday, the initiative was born out of a partnership with local crypto broker Bitcoin Suisse, with the firm chosen to facilitate all crypto tax payments for the city.
Bitcoin Suisse will be in-charge of converting all crypto tax payments to Swiss francs before handing them to the authorities.
Commenting on the development, Bitcoin Suisse wrote on its Twitter page, saying:
“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!”
To promote the service’s easy usage, Bitcoin Suisse has released a one-minute three-second video instruction to teach taxpayers how to use the new payment method.
According to the video, citizens or businesses interested in using the new payment method must first inform tax authorities about their decision to pay their crypto taxes upon receiving their tax invoices.
The authority will then forward a mail to their email addresses containing a QR code, which users can scan from a crypto wallet address to pay the stipulated amount. Once successful, the tax authorities will send a confirmation message to the users’ email.
Plans Unveiled Last Year
The Swiss canton of Zug first announced its plans to accept cryptocurrency tax payments back in September 2020, as it tried to extend crypto usage in everyday life.
At the time, the city noted that taxpayers could use it to pay up to 100,000 CHF (around $109,000) of their taxes in both BTC and ETH once the service goes live.
Despite the potentials associated with the new tax payment method, there will be no option of making part payments using cryptocurrency.
The Swiss canton of Zug has been a strong supporter of crypto growth over the years. The city is home to the famous “Crypto Valley,” an association that comprises blockchain and cryptocurrency companies based in the canton.
So far, the canton has established favorable regulations for the blockchain space to foster its growth.