Slovakian Parliament Approves Bill Lowering Taxes on Cryptocurrency Income
The Slovakian Parliament has voted in favor of a bill that will reduce taxes on income derived from cryptocurrencies. This amendment will have a significant impact on crypto holders in Slovakia.
- Crypto income tax reduced to 7%: The National Council approved the amendment to lower personal income tax on profits from the sale of crypto held for at least one year. Previously, these profits were taxed at rates of 19% or 25%, but they will now be taxed at a reduced rate of 7%.
- No tax on payments received in cryptocurrencies: The amendment also states that payments received in cryptocurrencies up to 2,400 euros ($2,600) will not be taxed. Additionally, cryptocurrency income is exempt from a health insurance contribution of 14%.
- Estimated loss of 30 million euros: The Ministry of Finance predicts that the tax cuts will result in an annual loss of approximately 30 million euros for Slovakia.
Europe Takes Regulatory Strides, US Falls Behind
Slovakia is one of the European Union member states that has been actively promoting cryptocurrency regulations. The EU recently passed the MiCA bill, which will establish Europe as a hub for digital assets. In contrast, the US is lagging behind in terms of regulatory progress.
The UK has also taken a significant step towards crypto regulation with the enactment of the Financial Services and Markets Bill, which will classify cryptocurrencies as a “regulated activity.”
While countries like Europe, Hong Kong, Singapore, and Dubai compete to establish themselves in the growing crypto market, the US is driving the industry away with regulatory hurdles. This creates an opportunity for those who embrace cryptocurrencies to thrive.
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