Signs of Adoption: Overstock to Pay Taxes with Bitcoin
Major internet retailer Overstock is set to become the first large US-based corporation to pay its state business tax in Ohio using Bitcoin.
Bitcoin Taxes in Ohio
Popular internet retailer Overstock announced Thursday, January 3rd, that it intends to pay a part of its commercial activity taxes (CAT) in Ohio during February using Bitcoin. Supposedly, the company will become the first major corporation to pay its taxes using digital currencies.
The move comes a few months after Ohio became the first state to allow businesses to pay taxes using Bitcoin.
Speaking on the matter was Patrick M. Byrne – Founder and CEO at Overstock, who noted:
We have long thought that thoughtful governmental adoption of emerging technologies such as cryptocurrencies (when accompanied by non-restrictive legislation over these technologies) is the best way to ensure the U.S. does not lose our place at the forefront of the ever-advancing global economy. […] We are proud to partner with forward-thinking governments and officials like Ohio and Treasurer Mandel to help usher in an era of trust through technology for our nation’s essential financial systems.
What’s the Point?
It appears that there is a solid financially justified reason for using Bitcoin instead of cash for paying taxes.
In an Interview for Fortune, State Treasurer Josh Mandel revealed that those who opt to pay their taxes using a credit card are subjected to a flat 2.5 percent service fee. On the other hand, Bitcoin users would only incur a 1 percent service fee.
Overstock, however, is in an even better position, as according to Mandel, ‘early filers’ such as the company won’t be subjected to a fee at all.
In addition, Mandel salutes Overstock’s move:
We applaud Overstock for becoming the first national brand in America to register to pay taxes via cryptocurrency. Their embrace of blockchain technology was ahead of its time and we’re proud to have them join OhioCrypto.com.
What do you think of Overstock using Bitcoin to pay its taxes? Let us know in the comments below!
Images courtesy of Shutterstock.
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