Slovakian Crypto Tax-Cutting Bill Passes National Parliament

Slovakian lawmakers on Wednesday voted 112-2 in favor of a law intended to cut taxes on the sale of digital currency.

The income tax bill aims to “to reduce the tax burden in connection with the sale of virtual currencies, thereby simplifying their use in everyday life,” said an explanatory document issued by a grouping of members of the Slovak National Council.

“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, the bill added.

The June 28 vote constituted the third reading of the bill in the Council, Slovakia’s sole legislative body.

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.