Benzinga - Members of the Slovakia Parliament cast their votes in favor of an amendment that will bring down the tax on cryptocurrency profits, among other measures impacting cryptocurrency holders.
What Happened: Lawmakers in Slovakia approved an amendment on June 28 that entails a reduction in the personal income tax for profits accrued from selling cryptocurrencies in possession for at least one year.
The new tax rate is set at 7%, marking a substantial reduction from the previous tax rates that varied between 19% and 25%.
The amendment stipulates any payments received in cryptocurrencies up to the equivalent of 2,400 euros, which is approximately $2,622.20, will remain untaxed.
Furthermore, the amendment exempts income derived from cryptocurrencies from a 14% health insurance levy.
A local Slovakian news source reported the Ministry of Finance expected the amendment to have a financial impact of about 30 million euros annually.
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Why It Matters: Notably, this development follows closely on the heels of another legislative amendment ratified by the Parliament, which enshrined the right of citizens to utilize cash for transactions amidst discussions surrounding a digital euro.
Slovakia, as one of the 27 countries that form the European Union, is part of a bloc that has been keeping a close eye on the evolution of the cryptocurrency industry across the continent.
On May 31, in a notable move, the European Union ratified the groundbreaking Markets in Crypto-Assets (MiCA) regulations.
These regulations were formulated with the objective of establishing Europe as a nexus for digital asset operations.
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