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‘Crypto Valley’ canton to accept Bitcoin for tax payments

A bitcoin ATM
A Bitcoin ATM in Crypto Valley © Keystone / Alexandra Wey

Canton Zug – the heart of Switzerland’s “Crypto Valley” – says it will accept Bitcoin or Ether as tax payments from February 2021.

The move will make it the first Swiss canton to accept payment with cryptocurrencies. The eponymously named capital of Zug has accepted Bitcoin for government services since 2016, but only up to a value of CHF200 ($220).

In a press release, the canton’s finance director, Heinz Tännler said: “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.”

Both companies and private individuals will be able to use either Bitcoin or Ether for payments up to CHF100,000.

Tännler said the canton was not taking any risks, since the authorities would receive Swiss francs for any payments made with a cryptocurrency.

The town of Chiasso at the border with Italy also accepts a limited amount of Bitcoin. And the mountain resort of Zermatt grabbed a few headlines at the start of this year when it said residents could pay a whole range of taxes in Bitcoin with no limit on the amount.

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