Slovakia’s National Council Has Voted To Lower Taxes On Profits From Crypto Sales And Taxation Down payment under $2,600.
The government slashing crypto taxes from a sliding scale of 19% to 25% to 7% could cost the government millions.
MiCA does not address tax
Companies do not pay tax on receipts of €2,400 ($2,600) or less. Citizens will not have to contribute 14% for health insurance from crypto income. The country’s finance ministry said yesterday that the latest tax measures would reduce the annual revenue the government collects by €30 million.
In addition, the government Desire Expand the pool of authorized investors to invest in products. Slovak National says it aims to “reduce the tax burden in relation to the sale of virtual currencies, thereby facilitating their use in everyday life.” council,
Portugal, which is also a state in the European Union, does not charge any value-added tax for cryptocurrency payments. However, companies providing crypto-related services will have to pay capital gains tax between 28 and 35%. Those earning their primary income from bitcoin trading must file a tax return.
In contrast, Switzerland, a non-EU member, levies no tax on capital gains or income. However, it levies a wealth tax of 0.5-0.8% on assets including crypto.
EU law enforces tighter tax rules to plug loopholes
Slovakia is a member of the European Union, which recently passed a crypto-assets bill. The bill, which comes into effect in 2024, primarily handles crypto asset disclosure and exchange registration requirements. It does not specify tax brackets for cryptocurrency transactions or income.
However, EU finance ministers from member states agreed on new DAC8 reporting Rule to crypto service providers in May.
Local and foreign companies have to report on their transactions annually to help the tax authorities fill income tax forms. While filing returns, citizens should confirm that their crypto trading information is correct.
US Congressman Brad Sherman recently wrote a letter demanding the US Treasury to finalize regulations on crypto taxation. The Internal Revenue Service (IRS) uses tools from cyber security firm AnChain.ai to track fund flows linked to tax evasion.
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Source: Crypto Saurus
