A region in Switzerland called Zug is considering accepting cryptocurrency for tax payments in 2021. News.bitcoin.com reports that from February next year taxpayers will be able to use Bitcoin and Ether for paying their taxes instead of fiat currency. Zug region is among the first to decide on this, although several other regions in the country also support the initiative. The project is possible thanks to the collaboration with a firm Bitcoin Suisse.
According to the source, individuals and companies can pay in cryptocurrency if their tax amount does not exceed CHF 100,000. Moreover, taxpayers have to pay the amount they owe in full. For the citizens to be able to use crypto, they will need to notify the tax office prior to payment. Then, they will receive a QR code to proceed with transferring the funds. Before rolling out the program, the organization will run a pilot in the upcoming weeks. This will help to make sure the cryptocurrency tax payments system works well.
Switzerland is among the leading countries supporting blockchain technology and startups. It is home to Crypto Valley, an ecosystem with many organizations and companies specializing in blockchain innovation. Moreover, this summer the country’s government introduced new laws in favor of blockchain startups.