The Canton of Zug informed in a press release of 3 September 2020 that the payment of taxes with cryptocurrencies will be accepted from February 2021 onwards. The payment will be possible with the cryptocurrencies Bitcoin (BTC) and Ether. Both companies and individuals can benefit from the new payment method.
The payment with cryptocurrencies will be limited to CHF 100,000. Taxpayers who wish to pay their taxes with cryptocurrencies after February 2021 can notify the tax authorities Zug. The tax authorities will cooperate with external service providers who will immediately exchange the cryptocurrencies into Swiss Francs in order to minimize currency exchange risks.
The Canton of Zug is the first canton in Switzerland that will accept the payment of taxes with cryptocurrencies. This is an important step for a widespread adoption of cryptocurrencies as generally accepted means of payment. The Canton of Zug also strengthens its position as “Crypto Valley” with many resident companies in the blockchain or crypto-industry. As advisor of numerous such companies we appreciate the decision of the Canton of Zug. It shows that the Canton of Zug supports the blockchain industry. Together with attractive income tax rates around 11.9% (including federal level), the opportunities to obtain advance tax rulings within a short period of time (also relating complex to crypto transactions), potential tax benefits for research & development expenses and now also practical assistance to pay taxes in cryptocurrencies, the Canton of Zug is offering a very supporting environment for companies in the blockchain industry.
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Our tax advisors and lawyers would be happy to support with any further questions you may have regarding this topic.