Slovakia Votes to Lower Crypto Taxes

Slovakia Votes to Lower Crypto Taxes

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The Slovakian Parliament this week voted in favour of a bill that would lower taxes on income derived from cryptocurrencies.

Members of the Slovak Republic’s National Council, or parliament, voted to approve an amendment that would lower cryptocurrency taxes, along with other measures that would affect crypto holders.

Crypto Income Tax Reduced to 7%

Bloomberg Law reports that Slovakia’s National Council voted in favour of reducing personal income tax on profits derived from the sale of crypto held by a user for at least one year. As it stands, cryptocurrency profits are taxed on a sliding scale of either 19% or 25%.

The approved amendment will see taxes lowered significantly to 7%.

The amendment further declares payments received in cryptocurrencies up to 2,400 euros, or $2,600, will not be taxed. Additionally, the bill excludes cryptocurrency income from a health insurance contribution of 14%.

Slovakia Will Lose 30 Million Euro Through Tax Cuts

The newly amended tax policy comes only weeks after parliament passed a constitutional amendment that codifies citizens’ right to use cash as payment. The amendment was made due to talk about a digital euro.

According to a local Slovakian media outlet, the Ministry of Finance estimates it will lose around 30 million euros annually due to the tax cut.  

US Lags as Europe Makes Regulatory Strides

Slovakia, as one of the 27 member states of the European Union (EU), has been promoting cryptocurrency regulations across the region. The EU voted in favour of its landmark MiCA bill, which will make Europe a hub for digital assets. The bill will take effect in 2024.

The UK also made a significant step toward its crypto goal. The House of Lords voted to enact the Financial Services and Markets Bill, which will see cryptocurrencies become a “regulated activity.”

While Europe, Hong Kong, Singapore and even Dubai compete for their share in the booming crypto market, the situation is less than ideal in the US. With full backing from the Biden administration, the SEC drives the industry away from its shores and ultimately into the arms of those who embrace it.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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