The canton of Zug in Switzerland has increased the limit for tax payments in Bitcoin and Ethereum. Previously set at 100,000 Swiss francs, this limit is now 1.5 million Swiss francs.
Canton of Zug is increasing its tax burden on bitcoin
In Switzerland, the canton of Zug is giving increasing prominence to Bitcoin. According to a statement relayed by The Block, the limit for tax payments in Bitcoin and Ether has been raised. Previously set at 100,000 Swiss francs, the cap for tax payments in crypto has jumped to 1.5 million Swiss francs, or more than $1.6 million.
The increase in the limit is an important step towards the digital future.Heinz Tannler, Chief Financial Officer of Zug
The increase in the cap is undeniable proof of the Canton of Zug’s commitment to cryptocurrencies. The decision is just the beginning of a series of innovations to promote paying taxes through Bitcoin and Ethereum, according to Zug authorities. According to Heinz Tannler the Financial Director of the Canton of Zug, taxpayers will be able to pay their taxes with cryptocurrencies by directly scanning the QR code on the payment slips issued by the tax authorities. This will start in the second half of 2023.
Zug, a successful adoption of Bitcoin for tax payments
Zug had announced its intention to accept the Bitcoin and the Ethereum for taxes in September 2020. Four months later, thanks to Bitcoin, Switzerland residents were able to pay their taxes in Bitcoin and Ethereum. At that time, the Bitcoin was trading at about $52,000.
However, the limit on these crypto tax payments was set at 100,000 Swiss francs, or nearly $110,000 USD. Despite this limit, the adoption of Bitcoin and Ethereum as a means of payment has been relatively successful. Since February 2021, Zug recorded nearly 2 million Swiss francs in cryptocurrency tax transactions. The increase in the limit for crypto tax payments is expected to boost this volume.
Zug’s experience shows that Bitcoin can help authorities collect taxes. So, it’s not surprising that other regions, like Mendoza in Argentina or the Colorado in the United States are following this model. Other countries should be inspired by it.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.