An amendment to the cryptocurrency tax has been approved in Slovakia, as the National Council of the Slovak Republic voted in favor of tax reduction. Personal income tax on profits from the sale of cryptocurrencies will be reduced for individuals who hold them for at least one year. Taxes will be reduced to 7%, a significant decrease from the current rates ranging from 19% to 25%.
Additionally, payments received in cryptocurrencies up to the value of 2,400 euros will be exempt from taxation. Furthermore, the amendment exempts crypto income from a 14% health insurance contribution.
According to reports, the financial impact of this amendment is expected to be around 30 million euros annually. This move comes in the context of recent developments in the cryptocurrency industry and its regulation in the European Union.
It is worth noting that the European Union recently approved new regulatory rules for crypto assets through the main Crypto-Assets Markets in Europe (MiCA) regulation. These legislations aim to make Europe a hub for digital asset activities. Meanwhile, in the United States, there is still a lack of comprehensive guidance for the cryptocurrency industry, and the Digital Asset Market Structure and Investor Protection Act is currently under review.
On another note, Hester Peirce, a member of the U.S. Securities and Exchange Commission (SEC), pointed out that cryptocurrency laws should not consider “everything as a financial asset.” This highlights the challenges faced by regulatory authorities in governing this sector.