• Slovakia Parliament has approved a bill to lower tax on cryptocurrencies from 19-25% to 7%.
• Cryptocurrency payments up to 2400 euros will not be taxed.
• The amendment also exempts cryptocurrency income from 14% health insurance contribution.
Slovakia Parliament Approves Lowering of Crypto Taxes
The Slovakian parliament recently voted on June 28th to approve a change that would lower personal income tax for gains made from the sale of cryptocurrencies that the user has held for at least one year. The taxes will be decreased from the current sliding scale of either 19% or 25%, and lowered to a flat rate of 7%. Additionally, cryptocurrency payments up to 2400 euros, or roughly $2,622.20, won’t be taxed.
Tax Exempts for Crypto Users in Slovakia
This new amendment also exempts cryptocurrency income from a 14% health insurance contribution. A local Slovakian media outlet reported that the Ministry of Finance believes this amendment will have an estimated financial impact of about 30 million euros annually. This decision follows another constitutional amendment passed by the parliament earlier that guarantees citizens the right to use cash as payment in light of discussions surrounding a digital euro currency.
EU Regulation MiCA Adopted by Slovakia
Slovakia is one of 27 member states within the European Union (EU) and is part of recent efforts towards regulating cryptocurrency markets by adopting Markets in Crypto-Assets (MiCA). MiCA was introduced with hopes to make Europe into a hub for digital asset trading and investments with updated rules concerning crypto assets within EU countries.
Crypto Adoption Growing Worldwide
As more countries move towards accepting cryptocurrencies as payment solutions, adoption rates begin to increase around the world with more businesses accepting them as payment methods especially within tech industries like eCommerce stores or mobile gaming platforms. With regulations such as MiCA created specifically for digital assets, it provides much needed clarity and security while using cryptocurrencies as everyday mediums of exchange and investments tools.
The approval of this bill reduces taxation on cryptocurrencies sold after being held for at least one year, along with exemptions on healthcare contributions and payments under 2400 euros without taxation helps support its growing adoption across Europe through better regulations as well as increased transparency within its marketplaces promoting usage among citizens worldwide