The National Council of the Slovak Republic, Slovakia’s parliament, has approved measures to lower taxes on cryptocurrencies and provide additional benefits for cryptocurrency holders. The amendment, passed on June 28, will reduce the personal income tax rate on profits obtained from the sale of cryptocurrencies held for at least one year.
Under the new legislation, the tax rate will be set at 7%, a significant reduction from the existing sliding scale of 19% or 25%. Additionally, profits received in cryptocurrencies up to the value of 2400 euros (approximately $2,622.20) will be exempt from taxation.
Furthermore, the amendment exempts income received in the form of cryptocurrencies from the 14% health insurance contribution.
The Ministry of Finance estimates that the amendment will have a financial impact of approximately 30 million euros per year, according to a local Slovakian media outlet.
This development follows another recent amendment to the constitution that officially enshrined the right of citizens to use cash as a method of payment, a response to discussions surrounding the potential introduction of a digital euro.
