• Slovakian lawmakers have voted in favor of a law to reduce taxes on the sale of digital currency.
• The bill seeks to tax income from cryptocurrency held for more than one year at a rate of 7%.
• This is intended to make crypto easier to use in everyday life.
Slovakian Crypto Tax-Cutting Bill Passes National Parliament
Lawmakers in Slovakia have voted 112-2 in favor of a law designed to reduce taxes on the sale of digital currency. The bill proposes that income from crypto held longer than one year be taxed at a rate of 7%, with any other taxable income being included as normal.
Purpose of the Bill
The main aim of the tax-cutting bill is “to reduce the tax burden in connection with the sale of virtual currencies, thereby simplifying their use in everyday life”, according to an explanatory document issued by members of the Slovak National Council.
European Union Member States
As European Union member states are free to set their own rules when it comes to taxation and cryptocurrencies, this could be an advantageous decision for Slovakia if it results in increased popularity for crypto transactions within its borders. Portugal also offers favorable treatment for cryptocurrencies, though ministers announced they would reverse this policy last year.
Third Reading Vote
The June 28 vote was the third reading on the bill at Slovak National Council, which constitutes its sole legislative body.
Conclusion
These new measures may prove beneficial for Slovakia if it results in increased usage and acceptance of digital currency transactions within its borders – only time will tell how successful this new legislation proves to be!
