In Slovakia, the parliamentarians have recently made a decision regarding cryptocurrency taxes, along with some other provisions impacting individuals who possess cryptocurrencies.
The Slovakian parliament voted on June 28 and effectively approved an amendment that introduces a decrease in personal income tax for gains derived from the sale of cryptocurrencies. It is worth mentioning that this reduction is applicable to cryptocurrencies held by the user for at least one year.
Under the approved amendment, the tax rate will be set at 7%, signifying a significant decrease compared to the existing progressive tax scale of either 19% or 25%. Moreover, individuals will not be required to pay taxes on payments received in cryptocurrencies that amount to 2400 euros (approximately $2,622.20).
Furthermore, the amendment introduces an exclusion for cryptocurrency income from a health insurance contribution of 14%. This means that individuals will not be obliged to contribute to health insurance based on the income they generate through cryptocurrency transactions.
According to a local Slovakian media outlet, the Ministry of Finance expects that the amendment will have a financial impact of approximately 30 million euros per year.
This amendment follows another recent constitutional amendment passed by the parliament, which enshrined the right of citizens to use cash as a means of payment in response to discussions surrounding the potential introduction of a digital euro.
As a member state of the European Union, Slovakia has been actively monitoring developments in the cryptocurrency industry across the region, along with the other 26 EU member states.
Notably, the EU recently enacted the markets in Crypto-Assets (MiCA) regulations on May 31, marking a significant milestone for the region. These regulations were designed to establish Europe as a center for digital asset activities.
