The canton of Zug, one of the member states of the Swiss Confederation, is set to accept bitcoin (BTC) and ether (ETH) for tax payment from next year.
The Zug administration announced the news on Thursday, saying that beginning February 2021, companies and individuals will be able to pay their taxes in the two cryptocurrencies for an amount of up to CHF 100,000 (~$110,000).
The Zug Department of Finance has collaborated with Bitcoin Suisse for the initiative, meaning the Swiss crypto firm will convert users’ BTC and ETH tax payments into francs for the agency.
“We do not take any risk with this new payment method, as we always receive the amount in Swiss Francs, even if payment is made in Bitcoin or Ether,” said Heinz Tannler, finance director of the Zug administration.
A pilot will take place in the coming weeks to test the new initiative, said Tannler, adding that those who wish to pay taxes with cryptocurrencies may contact the cantonal tax office. They will then receive the necessary QR code for payment, mostly via email.
It is worth noting that the Zug city, the capital of the canton, already accepts bitcoin for tax payments, also via Bitcoin Suisse, since 2016. The Swiss municipalities of Zermatt and Chiasso also accept bitcoin for smaller tax payments.