The parliament of the Republic of Slovakia has backed an amendment that will result in the cutting down of tax on cryptocurrencies.
Following the move, personal income tax on sales of cryptocurrencies held for a minimum of one year will be reduced to 7%. The tax bill submitted by SaS, Democrats, and OĽaNO was approved on Wednesday by the Parliament.
Moreover, cryptocurrency profits are currently being taxed on a sliding scale ranging from 19% to 25% or higher. According to a bitcoin news and commentary account on Twitter, the tax rate has dropped from 39% to 7%.
Further, the bill will also exempt cryptocurrency income from health taxes or “subject to a health insurance contribution of 14%.” This is applicable where “the taxpayer is a natural person and has not booked the cryptocurrency as a business asset.”
The development is however aimed at reducing the tax burden on the sale of virtual currencies which includes crypto.
According to a local news outlet in Slovakia, the proposed amendment bill has several noteworthy implications. One of them is the provision stating that payments made in cryptocurrencies up to 2,400 euros will not be subject to taxation.
Moreover, this development is expected to have a positive impact on the overall business and investment environment in the country. The annual long-term investment fund is projected to double, as well as the number of participating investors. Currently set at 3,000 euros, the investment fund will increase to 6,000 euros, and the percentage of investors will rise from 20% to 30%, as stated in the analysis by the local news outlet.
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