Switzerland will accept Bitcoin and Ether for tax payment from February 2021

A small region in Switzerland, already recognized for its openness to high-tech finance technologies, has announced his intention to accept cryptocurrencies as tax payment method starting 2021.

The Swiss canton of Zug joins the city with the same name and other localities in the area, introducing the payment of taxes in Crypto Coins (for now Bitcoin and Ethereum).

Officials in the region known as a “Crypto Valley” of Europe said that the pilot program launched in February will allow individuals and local companies to pay their taxes using their preferred cryptocurrency, up to the equivalent of 100,000 Swiss francs.

However, the authorities have taken a precautionary measure to prevent the abuses of those who would like to take advantage of the volatility of cryptocurrencies, paying a lower value than they would pay in the national currency:

“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 the finance director Heinz Taennler in a statement.

Taxpayers wishing to pay their fees in cryptocurrency will have to send a prior notification to the tax authorities, who will  return a QR code with the address of the account in which the payment will be made.

Switzerland is not the first country to experience the use of cryptocurrencies to pay taxes. A former treasurer from the American state of Ohio was conducting a similar experiment in 2018. The initiative was a failure, because a local court declared the program illegal.

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