In a recent decision, the parliamentarians in Slovakia have made significant changes to the country’s cryptocurrency tax regulations, affecting individuals who own and trade digital currencies.
On June 28, the Slovakian parliament voted in favor of an amendment that brings about a reduction in personal income tax for profits made from the sale of cryptocurrencies. It’s important to note that this tax cut applies to cryptocurrencies held by users for a minimum of one year.
Under the approved amendment, the tax rate will be set at 7%, a substantial decrease compared to the existing progressive tax scale of either 19% or 25%. Additionally, individuals will not be required to pay taxes on cryptocurrency payments received up to the value of 2400 euros (approximately $2,622.20).
Furthermore, the amendment introduces an exemption for cryptocurrency income from a 14% health insurance contribution. This means that individuals will no longer be obligated to contribute to health insurance based on the income they generate from cryptocurrency transactions.
According to a local Slovakian media outlet, the Ministry of Finance estimates that this amendment will result in an annual financial impact of around 30 million euros.
This amendment comes on the heels of another recent constitutional amendment passed by the Slovakian parliament. The previous amendment affirmed the right of citizens to use cash as a form of payment, a response to ongoing discussions about the potential introduction of a digital euro.
As a member state of the European Union (EU), Slovakia has been closely monitoring developments in the cryptocurrency industry alongside the other 26 EU member states.
Notably, the EU recently implemented the markets in Crypto-Assets (MiCA) regulations on May 31, which marked a significant milestone for the region. These regulations were put in place to establish Europe as a hub for digital asset activities.
Compiled by Coinbold