Tax payments with cryptocurrencies
As of February 2021, individuals and companies who are liable to tax in the Canton of Zug are able to pay their tax invoices with the cryptocurrencies Bitcoin and Ether.
Frequently asked questions
If you have any questions concerning cryptocurrencies please find enclosed various explanations.
The payment of taxes with cryptocurrencies includes exclusively the taxes invoiced by the Cantonal Tax Administration Zug.
Individuals can pay the following taxes with cryptocurrencies:
- Income and wealth taxes on Cantonal and Communal level;
- Direct federal tax;
- Inheritance and gift taxes;
- Income tax at source.
Companies can pay the following taxes with cryptocurrencies:
- Profit and capital taxes on Cantonal and Communal level;
- Direct federal tax;
- Taxes at source.
Taxes invoiced by Communities, such as property gain taxes or dog taxes cannot be paid with cryptocurrencies.
Every individual or company liable to tax in the Canton of Zug is eligible to pay taxes invoiced by the Cantonal Tax Administration Zug with cryptocurrencies. The latter contains the income and wealth taxes of individuals as well as the profit and capital taxes of companies. Moreover, income taxes at source and inheritance and gift taxes can be paid with cryptocurrencies.
You can pay tax invoices up to CHF 1’500’000.– with the cryptocurrencies Bitcoin or Ether.
The limit has been increased from originally CHF 100’000 to CHF 1’500’000.–. The increase was chosen based on experience and is part of the risk framework of Bitcoin Suisse AG.
- As usual, you receive your tax invoices as hardcopy by mail.
- You inform the Cantonal Tax Administration Zug that you wish to pay your tax invoice with one of the offered cryptocurrencies.
- The Cantonal Tax Administration will then send you an e-mail, containing a link for payment.
- To start the payment, you click on the link provided in the e-mail. In the next step, you can choose whether to pay the taxes in Bitcoin or in Ether. Then, a QR code will be generated and shown on your device. We recommend that you do not open the link on the device on which your crypto wallet is installed as you have to scan the generated QR code (i.e. open the e-mail on your computer and open the crypto wallet on your smartphone). The QR code contains the invoiced tax amount in the current rate of the chosen cryptocurrency.
- Scan the QR code with your mobile wallet.
- Optionally, you can enter your e-mail address in order to receive a receipt for your payment. We recommend doing so with respect to accounting principles.
- Confirm the payment by means of a double click or swiping.
We recommend to double check your entry before confirming the payment. Pay special attention to the blockchain address and match it with the blockchain address of your app.
Please send us an e-mail with the subject «Cryptocurrencies». Due to data protection reasons, please use exclusively our safe contact form
(pls see below) and include the following information:
- Name / Surname / Company Name
- Your personal identification number (as seen on the tax invoice)
- The specific tax bill that you wish to pay with cryptocurrencies (e.g. Cantonal and Communal taxes 2020)
- Tax amount to be paid in Swiss Francs
No, the payments for your tax liability cannot be split.
If you receive a tax invoice, you cannot partially pay it with Swiss Francs and partially with cryptocurrencies. If you choose to make a payment in cryptocurrency, the tax invoice must be paid in its entirety with cryptocurrencies.
Please ensure that the amount displayed in Swiss Francs on your screen corresponds exactly to the amount of the tax invoice you wish to pay with cryptocurrencies, whether it is the entire tax liability or a single installment. If you scan the QR code on the tax invoice with a crypto wallet app of your choice, the tax liability listed on the tax bill will be automatically displayed in your crypto wallet app for confirmation.
In case you have erroneously paid a higher amount than stated on your tax invoice, the overpayment will automatically be re-booked and credited to future tax periods.
A refund in cryptocurrencies respectively a bank transfer in Swiss Francs is not possible.
In case the invoiced amount has not been paid in full, the screen will show you the missing amount. By scanning the QR code again, the outstanding amount can be paid immediately.
Bitcoin Suisse AG transfers the paid amounts in Swiss Francs with the value date of T+1 from the account of Bitcoin Suisse AG at Luzerner Kantonalbank to the account of the Zug Departement of Finance at Zuger Kantonalbank.
A taxpayer pays his tax invoice on the 1st of a month using cryptocurrencies. The amount in Swiss Francs is credited to the account of the Zug Departement of Finance on the 2nd of the month.
The remitting person will be charged a fee of 1 % of the taxes paid with cryptocurrencies. This fee is levied for the exchange of cryptocurrencies to Swiss Francs and will be collected and charged directly at the time of the remittance. The fee is charged by Bitcoin Suisse AG, not by the Cantonal Tax Administration.
The taxable person does not have to be a client of Bitcoin Suisse AG. The payer merely needs a smartphone or tablet, a wallet with Bitcoin or Ether as well as a stable internet connection. The client of Bitcoin Suisse AG is the Departement of Finance of the Canton Zug.
The Zug Finance Directorate and the Tax Administration are not exposed to any currency risk of cryptocurrencies.
Bitcoin Suisse AG is the operator of the crypto payment solution and, in this role, assumes the exchange rate risk.
Bitcoin Suisse AG transfers the tax debts settled in cryptocurrency to the Zug Financial Directorate of the Canton of Zug exclusively in Swiss Francs.
If you have any technical questions concerning cryptocurrencies please find enclosed various explanations.
Individuals and companies wishing to pay their tax debt with cryptocurrencies require
a) a smartphone or tablet with a camera function
b) an installed mobile wallet with funds in Bitcoin or Ether; and
c) a stable internet connection.
Our partner, Bitcoin Suisse AG, recommends the following wallets:
- BRD (for iOS)
- myCelium (for Android)
Please send your request by e-mail with the subject «Cryptocurrencies». Due to data protection reasons, please use exclusively our safe contact form (pls see below). Once we have received your request, we will contact you directly.
The QR code contains a remark to the respective blockchain (Bitcoin or Ether), a blockchain address as well as the amount in the chosen cryptocurrency.