Slovakia to reduce crypto gain taxes by 18%

The Slovak National Council passed a bill to reduce the crypto taxes for retail investors. 

Slovakia is a landlocked country in Central Europe. This country is located in the middle of Poland to the north, Ukraine to the east, Hungary to the south, Austria to the southwest, and the Czech Republic to the northwest. As per available information on Google, there is no dedicated crypto regulation framework in the country but the crypto companies willing to provide crypto services in this country are required to register with the tax authorities.

Recently a crypto tax bill passed in Slovakia and that will come into effect soon. Under the measures of this bill, crypto investors will be allowed to pay only 7% against the profit they will generate from holding a crypto asset for a year or more. 

If a crypto Investor will sell his crypto investment before 12 months of a time frame then in that situation he will be required to pay 19% to 25% on behalf of the amount of the profit. Also, the new rule is only for retail investors or individual investors, which means crypto investment should not be part of the Investor’s business activities.

A few experts noted that Slovakia’s latest crypto tax policy is more similar to the stock assets investment and this is giving a hint that the government of Slovakia is considering bringing a defined class for the crypto sector & which will probably be stock assets. 

Some people claimed that the regulatory bodies of Slovakia are looking to follow an approach similar to the United States Securities Exchange Commission (SEC).

Under the purview of the US SEC, nearly all crypto assets are security tokens. Even Ethereum (ETH) is also a security token under the purview of the SEC body. 

This month, the American securities regulatory body initiated suits against two top crypto firms BinanceUS & Coinbase over allegedly providing unregistered securities offerings. While defendants crypto firms confirmed that they listed only those crypto assets which were perfectly non-security on behalf of the existing securities act laws and also argued that the SEC body is still trying to take harsh action, while failing to provide clarity over its crypto regulatory approach.

Read also: IMF official says US Dollar weaponization is forcing countries to adopt or develop alternative