Just a few years ago, cryptocurrencies were viewed merely as assets that paved the way for illicit activities. Even though many authorities still continue to denounce digital assets, the ones in support of these assets have witnessed an increase. Currently, there are many instances that indicate that cryptocurrencies will soon find a prominent position in the global economy. A piece of recent news from Switzerland stands as substantial proof of the same.
Taxes In Crypto
On Thursday, one of the states of among the 25 others of the Swiss Confederation, the canton of Zug announced the acceptance of prominent cryptocurrencies, Bitcoin [BTC] as well as Ether [ETH] for tax payments. The announcement further revealed that the Zug administration had collaborated with Zug-based crypto-financial company Bitcoin Suisse. This initiative, however, will commence from February 2021.
Speaking about the canton’s latest move towards technological innovation, Heinz Tannler, the Finance Director pointed out the necessity for the inclusion of crypto in everyday life. He added,
“As the home of the Crypto Valley, it is important to us to further promote and simplify the use of crypto currencies in everyday life. We can make one by being able to pay tax debts with Bitcoin or Ether big step in this direction.”
Zug would reportedly be the first Swiss canton to accept cryptocurrencies for tax payments. The canton’s official website further highlighted that both individuals, as well as companies, could utilize this forthcoming change. Citizens who would wish to pay taxes via crypto are required to let the tax administration beforehand. Soon after this, the taxpayers would be given a QR code via email. To prevent any sort of impact on the payments considering the volatile nature of cryptocurrencies, the Finance Director further stated,
“We are not taking any risks with the new payment method, as we always receive the amount in Swiss francs even when paying in Bitcoin or Ether.”
Bitcoin Suisse is not new to the crypto-verse. The platform made its way into the market back in 2013 and has been a prominent platform of the “Crypto Valley.” The CEO of Bitcoin Suisse, Arthur Vayloyan also commented on its latest collaboration and said,
“The combination of trading technology and payment transactions with cryptocurrencies enables us to offer the taxpayer a good user experience and to offer the canton of Zug a mature service.”
Previously, Ohio created a buzz after it announced that it would accept crypto for tax payments. However, only two companies were paying taxes through crypto and the website was eventually taken down.