Income tax will be reduced to 7% for cryptocurrency profits.
Slovakia’s national parliament approved a bill in late June that seeks to reduce income tax on cryptocurrency profits, in order to encourage the use and adoption of these digital assets in the country.
Thus, after years of taking several strict measures that sought to close the doors to the crypto industry in Slovakia, lawmakers have voted in favor of a bill that will reduce the current income tax, which stands between 19% and 25%, to 7% for profits made from the sale of cryptocurrencies. The tax will apply to all those investors and holders who have held their crypto assets for at least a year.
The vote by members of the National Council of the Slovak Republic, the country's parliament, closed with 112 votes in favor of the aforementioned bill and 2 votes against.
Other exemptions for cryptocurrencies in Slovakia
Being one of the 27 member states that make up the European Union, it seems that Slovakia is taking more favorable measures for the crypto sector in the country.
Furthermore, the bill in question, which was submitted by MP Peter Cmorej to amend Act No. 595/2003, also seeks to modify the tax on cryptocurrency payments. As mentioned in the bill, payments received in cryptoassets for an amount of up to 2.400 euros will not have to be declared in taxes.
The new tax measures being considered by the nation could have a significant impact on the crypto sector, which continues to grow within its jurisdiction.
According to the Slovak daily Dennikn, income earned from cryptocurrencies and health insurance contributions will also be exempt from taxes under the new law.
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