Slovakia Cuts Crypto Taxes: New Law Sets 7% Income Tax Rate
• Slovakian lawmakers voted 112-2 in favor of a law intended to cut taxes on the sale of digital currency.
• The income tax bill aims to reduce the tax burden and simplify their use in everyday life by taxing cryptocurrency held for over one year at a rate of 7%.
• Crypto held for less long periods would be included alongside other taxable income.
Slovakian Crypto Tax-Cutting Bill Passes National Parliament
Lawmakers wanted to see a 7% income tax rate for crypto held longer than a year. By Jack Schickler Jun 29, 2023 at 12:18 p.m. UTC
Overview of the Law
The June 28 vote constituted the third reading of the bill in the Council, Slovakia’s sole legislative body, which aimed to “reduce the tax burden in connection with the sale of virtual currencies, thereby simplifying their use in everyday life”. The proposed law stated that when selling virtual currency after one year has passed since its acquisition, it is proposed to tax income at a tax rate of 7%, while crypto held for less long periods would be included alongside other taxable income.
EU States Can Set Their Own Crypto Tax Rules
European Union member states such as Slovakia are free to set their own tax rules for crypto, offering a way to boost crypto popularity. Tax breaks offered in Portugal formed a major part of the country’s attractiveness to the sector, though ministers announced a U-turn on that favorable treatment last year.
The Top 1% Covers Crypto
The =nil; Foundation Says Its New Software Is Rocket Fuel for Zero-Knowledge Developers First Mover Asia: Large Bitcoin Holders Content to Hold Long Positions Amid Regulatory Turmoil . This article provides an overview on how some wealthy individuals have been able to cover their crypto investments and remain relatively unaffected by regulatory turmoil despite large bitcoin holders being content with holding long positions amid this uncertainty.
Conclusion
In conclusion, this article explains how Slovakia’s new law intends to reduce taxes on digital currencies by having them taxed at 7% if they are held for more than one year whereas cryptocurrencies held for less time would be taxed like any other taxable income according to EU regulations. Moreover, it also goes into detail about how some top 1% earners have been able take advantage of software and zero knowledge developers to stay ahead when it comes regulations and remaining unaffected by regulatory turbulence surrounding cryptocurrencies today