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Lawmakers in Slovakia have passed a parliamentary vote approving an amendment that will reduce the taxation burden on cryptocurrencies, which currently follow a sliding scale tax system.
The National Council of the Slovak Republic, Slovakia’s parliament, voted in favor of lower crypto taxes along with additional measures that impact cryptocurrency holders. The amendment, approved on June 28, reduces the personal income tax rate on profits derived from the sale of cryptocurrencies held for at least one year.
Under the new legislation, the tax rate will be lowered to 7%, a significant decrease from the existing sliding scale rates of 19% or 25%. Furthermore, cryptocurrency payments received up to 2,400 euros ($2,600) will be exempt from taxation. The amendment also excludes crypto income from a 14% health insurance contribution.
According to reports from local media, the Ministry of Finance expects the financial impact of this amendment to be around 30 million euros per year.
This development follows another recent constitutional amendment passed by parliament, which enshrined the right of citizens to use cash as a payment method amidst discussions about the potential introduction of a digital euro.
Slovakia is one of the European Union’s 27 member states actively monitoring developments in the crypto industry across the region. The EU signed the Markets in Crypto-Assets (MiCA) regulations into law on May 31, aiming to establish Europe as a digital asset hub. MiCA, first introduced in 2020, has been praised by industry participants for providing regulatory clarity.
In contrast, other major markets like the United States are still lacking comprehensive guidelines for the industry. U.S. Republican lawmakers have proposed the Digital Asset Market Structure bill, currently under review for its potential impact on the crypto industry.
During her remote appearance at Australian Blockchain Week on June 29, Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission, emphasized that crypto laws should not automatically assume that “everything is a financial asset.”
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