• The tax rate will be reduced from the current 19% or 25% sliding tax rate to 7%.
  • Also, cryptocurrency payments up to €2400 are not taxed.
  • Slovakia is one of the 27 European Union member states that recently adopted MiCA.

The Slovak parliament on June 28 approved an amendment to reduce personal income tax on profits from the sale of cryptocurrencies held by users for at least one year. Click here for more information on how to trade cryptocurrencies.

The tax will be cut from the current 19% or 25% sliding scale to 7%, a significant reduction. Cryptocurrency payments up to €2,400 (approximately $2,622.20) are tax-free.

Additional tax exemptions for Slovak cryptocurrency users

In addition, the yes-voted bill exempts 14% of health insurance premiums for cryptocurrency income.

Local Slovak media reported that the finance ministry believes the proposed amendments will have a fiscal impact of around 30 million euros a year. A few weeks ago, parliament approved another constitutional amendment codifying citizens’ right to use cash as a means of payment, given the debate over the digital euro.

Slovakia is one of the 27 countries that make up the European Union and is actively involved in regulating the cryptocurrency market. As previously reported here, on May 31st, the EU passed its historic Crypto Asset Market (MiCA) regulation. The rule was developed with the aim of making Europe a hub for digital asset trading.

By Jules

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