Slovakia Parliament approves lowering of crypto taxes
- The taxes will be lowered to 7% from the current taxation sliding scale of either 19% or 25%.
- Also, cryptocurrency payments of up to 2400 euros will not be taxed.
- Slovakia is one of the 27 member states of the European Union that recently adopted MiCA.
The Slovakian parliament voted on June 28 to approve a change that will lower personal income tax for gains made from the sale of cryptocurrencies that the user has held for at least a year. Click here for more on how to trade cryptocurrencies.
Taxes will be reduced from the current sliding scale of either 19% or 25% to 7%, a significant reduction. Cryptocurrency payments up to 2400 euros, or roughly $2,622.20, won’t be taxed.
More tax exempts for crypto users in Slovakia
Additionally, the voted-for bill exempts cryptocurrency income from a 14% health insurance contribution.
A local Slovakian media outlet reported that the Ministry of Finance believes the amendment will have a financial impact of about 30 million euros annually. A few weeks ago, the parliament approved another constitutional amendment that codified the right of citizens to use cash as a form of payment in light of the discussion surrounding a digital euro.
Slovakia is one of the 27 nations that make up the European Union, which has been actively working on cryptocurrency market regulation. On May 31, the EU passed its historic Markets in Crypto-Assets (MiCA) regulations as earlier reported here. The rules were developed with the intention of turning Europe into a centre for the trading of digital assets.