The Swiss canton of Zug now allows its residents to pay taxes in cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).
Bitcoin Switzerland, a local cryptocurrency broker who partnered with the state to activate the new option, announced on February 17 that it had launched a crypto payment option this week.
The cantonal government of Zug has published an official memorandum on the new tax options on its official website, which contains detailed video instructions on using cryptocurrency to pay taxes.
“The pioneering work of the Zug Cantonal Tax Office, associated with Bitcoin’s Crypto Payments solution in Switzerland, made this breakthrough possible in the introduction of cryptocurrency. This is another innovative symbol of Blockchain Nation CH.
The canton of Zug initially announced its intention to start accepting cryptocurrency for tax payment from September 2020 and to offer new payment options to local businesses and individuals.
Zug is widely known as “crypto valley” due to its positive attitude towards encryption, and it started experimenting with crypto payments about five years ago. In May 2016, the city of Zug piloted Bitcoin payments for utilities with a payment limit of 200 Swiss francs.
Zug is not the first region in Switzerland to support the payment of the crypto tax. Zermatt, a city in the canton of Valais, launched a Bitcoin tax option in cooperation with Bitcoin Switzerland in January 2020.