The members of Slovakia’s parliament, known as the National Council of the Slovak Republic, have recently approved new measures concerning cryptocurrency taxation. On June 28, the National Council voted in favour of an amendment that will significantly reduce the personal income tax on profits earned from the sale of cryptocurrencies held for at least one year.
Under the approved amendment, the tax rate will be lowered to 7%, a substantial decrease from the current 19% or 25% scale. Individuals will not be taxed on cryptocurrency payments totalling up to 2,400 euros ($2,600).
Furthermore, the amendment exempts crypto income from a 14% health insurance contribution, providing further benefits to cryptocurrency holders.
According to local media reports, the Ministry of Finance estimates that the amendment will have an annual financial impact of approximately 30 million euros.
This legislative change follows another recent amendment to the Slovakian constitution, which enshrined the right of citizens to use cash as a payment method amidst discussions surrounding the digital euro.
As a member of the European Union, Slovakia is actively monitoring developments in the cryptocurrency industry within the region. The EU has taken proactive measures by signing the Markets in Crypto-Assets (MiCA) regulations into law on May 31. These regulations aim to establish Europe as a prominent hub for digital asset activity and have been praised for providing regulatory clarity.
In contrast, other major markets, such as the United States, still lack comprehensive guidelines for the cryptocurrency industry. However, U.S. Republican lawmakers have introduced the Digital Asset Market Structure bill, currently under review, to address this issue.
On June 29, Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission (SEC), participated in Australian Blockchain Week remotely and emphasised that crypto laws should not automatically categorise everything as a financial asset.
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