Last Updated on May 19, 2023 by Bitfinsider
The canton of Zug, Switzerland’s “crypto valley,” has raised the barrier for tax payments in bitcoin (BTC) and ether (ETH) from CHF 100,000 (over $110,000) to 1.5 million Swiss francs (over $1.6 million) with immediate effect.
“The increase in the limit is an important step towards the digital future,” said Zug finance director Heinz Tannler in a statement on Friday. “From the second half of 2023 onwards, another innovation will be possible: paying taxes directly with cryptocurrencies by scanning the QR code on payment slips issued by the tax administration.” This streamlined approach makes using cryptocurrencies even more appealing.”
After first announcing the idea in September 2020, the canton of Zug began taking bitcoin and ether for tax payments in February 2021. Since the outset, the canton of Zug’s partner for accepting crypto tax payments has been Swiss firm Bitcoin Suisse. Bitcoin Suisse transforms taxpayers’ bitcoin and ether into Swiss francs for the canton as part of the agreement.
“The Canton of Zug has long been a vital hub for the cryptocurrency industry.” “The increase in the tax payment threshold demonstrates the Canton of Zug’s leading position in integrating cryptocurrencies,” said Bitcoin Suisse CEO Dirk Klee in a statement.
According to the release, the canton of Zug has had over 150 crypto tax transactions totaling around 2 million Swiss francs (over $2.2 million) since launching the program in 2021. “Based on the positive experiences so far, the Finance Directorate of the Canton of Zug invites individuals and businesses liable for taxes in the Canton of Zug to try out the new payment channel and pay their taxes with cryptocurrencies,” according to the statement.
Switzerland has become an appealing hub for crypto businesses in recent years, owing to its good regulatory framework and receptive attitude toward digital currency. Since 2016, the Swiss city of Zug has accepted bitcoin for tax payments through Bitcoin Suisse. In recent years, the Swiss towns of Zermatt and Chiasso have also accepted cryptocurrencies for modest tax payments.
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