The Tax Tides Turn As Slovakia Becomes A Crypto Dreamland

Members of the Slovakia Parliament cast their votes in favor of an amendment that will bring down the tax on cryptocurrency profits, among other measures impacting cryptocurrency holders.

What Happened: Lawmakers in Slovakia approved an amendment on June 28 that entails a reduction in the personal income tax for profits accrued from selling cryptocurrencies in possession for at least one year.

The new tax rate is set at 7%, marking a substantial reduction from the previous tax rates that varied between 19% and 25%.

The amendment stipulates any payments received in cryptocurrencies up to the equivalent of 2,400 euros, which is approximately $2,622.20, will remain untaxed.

Furthermore, the amendment exempts income derived from cryptocurrencies from a 14% health insurance levy.

A local Slovakian news source reported the Ministry of Finance expected the amendment to have a financial impact of about 30 million euros annually.

Also Read: Digital Euro Master Plan: European Commission Unveils Roadmap To Modernize Currency

Why It Matters: Notably, this development follows closely on the heels of another legislative amendment ratified by the Parliament, which enshrined the right of citizens to utilize cash for transactions amidst discussions surrounding a digital euro.

Slovakia, as one of the 27 countries that form the European Union, is part of a bloc that has been keeping a close eye on the evolution of the cryptocurrency industry across the continent.

On May 31, in a notable move, the European Union ratified the groundbreaking Markets in Crypto-Assets (MiCA) regulations.

These regulations were formulated with the objective of establishing Europe as a nexus for digital asset operations.

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