Bitcoin Taxes – The municipality of Zermatt, Switzerland — home to the iconic Matterhorn — is now the second location in Switzerland where taxpayers are officially allowed to pay their taxes in Bitcoin (BTC).
In order to unlock the new tax payment option, the authorities of the Zermatt have partnered with Switzerland’s major crypto financial services company Bitcoin Suisse.
Bitcoin Suisse to convert Bitcoin into Swiss francs
According to an announcement by Bitcoin Suisse, Zermatt started accepting Bitcoin as a means of payment for local taxes and transactions on Jan. 28, 2020.
By partnering with Bitcoin Suisse, the authorities of Zermatt are now able to convert taxpayers’ Bitcoin into Swiss francs through Bitcoin Suisse which then transfers the amount in fiat currency to the municipality’s bank account.
Taxpayers are able to pay online or via Bitcoin Suisse’s point-of-sale device – Bitcoin Taxes
Specifically, local taxpayers will be able to pay their taxes in Bitcoin via a point-of-sale tool installed in the Zermatt town hall or an online payment portal. However, in order to pay taxes with Bitcoin online, the taxpayers will have to apply directly to the Zermatt Tax Office for a crypto payment solution, the announcement notes.
Romy Biner-Hauser, the mayor of Zermatt, outlined that the new tax payment option aims to meet increased demand for Bitcoin-based tax payments:
“An innovative, pioneering spirit is one of the trademarks of Zermatt, which is why we are happy to support residents in providing them with the solutions they require.”
The city of Zug became the first in Switzerland to accept Bitcoin payments in 2016, Bitcoin Suisse said. AThe capital of Switzerland’s “Crypto Valley” began accepting Bitcoin payments for certain city services such as public utilities in May 2016. The payment was reportedly capped at 200 francs worth of Bitcoin.
While Switzerland continues to expand its crypto-financial services industry in terms of Bitcoin-powered tax payments, some global authorities have recently deemed such an option too risky due to Bitcoin’s high volatility.
On Jan. 8, lawmakers in the United States’ New Hampshire state legislature retracted a bill that would have allowed state agencies to accept crypto as payment for taxes. According to lawmakers the initiative was “inexpedient to legislate” as Bitcoin’s price is not stable.