Slovakian parliament approves lower crypto tax

Slovakian parliament approves lower crypto tax

The lawmakers of Slovakia approved a bill that will lower the current sliding scale for taxing cryptocurrencies.

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The National Council of the Slovak Republic, the country’s Parliament, has voted on a lower crypto tax and additional measures that affect cryptocurrency holders.

The National Council approved an amendment on June 28 that reduces the personal income tax for profits derived from the sale of cryptocurrency held by the owner for at least a year.

Taxes will be reduced to 7%. This is a substantial reduction from the current taxation scale, which ranges between 19% and 25%. Taxes will not apply to payments made in cryptocurrency up to a maximum of 2,400 euros.

The bill also excludes cryptocurrency income from the 14% health insurance contribution.

A report by a local Slovakian news outlet states that the Ministry of Finance expects the financial impact of the amendment to be about 30 million Euros per year.

This amendment follows a constitutional amendment that was passed by the parliament a few months ago, in which codified a citizen’s right of using cash as a method of payment due to talk about a digital Euro.

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The European Union has 27 members, including Slovakia. They have been actively monitoring the development of the crypto industry in the entire region.

The EU passed its Markets for Crypto-Assets regulations on May 31. The regulations were created to turn Europe into a hub of digital asset activity.

MiCA was first introduced in 2020. Companies have praised it for its regulatory clarity.

The United States has not yet implemented comprehensive guidelines. U.S. Republican legislators have proposed a Digital Asset Market Structure Bill which is being reviewed for its impact on the industry.

Hester Peirce from the U.S. Securities and Exchange Commission appeared remotely on June 29 at Australian Blockchain Week and reminded regulatory agencies that crypto legislation shouldn’t assume everything is a financial assets.

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