Switzerland's 'Crypto Valley' Has Started Accepting Bitcoin, Ether for Tax Payments

The Swiss canton of Zug has started accepting tax payments in cryptocurrency.

In a previous announcement in 2020, the Swiss authorities said that, from February, citizens and companies based in Zug will be able to pay up to 100,000 CHF (around $111,300) of their taxes in either bitcoin or ether. No partial payments in cryptocurrency will be accepted.

Zug has been dubbed "Crypto Valley" over the many industry companies drawn to the jurisdiction over its friendly blockchain and crypto regulation.

"As the home of the Crypto Valley, it is important to us to further promote and simplify the use of cryptocurrencies in everyday life," said Zug’s finance director, Heinz Tannler, when the tax initiative was announced.

Zug-based crypto broker and custodian Bitcoin Suisse has partnered with the canton, converting cryptocurrency payments into Swiss francs for the tax office.

Read more: Russia’s Crypto Tax Bill Passes First Reading at State Duma

According to the Zug Canton website, residents can request to pay taxes in cryptocurrency and will be emailed a link taking them to the crypto payment option.

Aa CoinDesk reported at the time, the city of Zug started accepting bitcoin payments for tax in 2017.