On Wednesday, a measure aimed to lower taxes on the selling of digital currency passed with a 112-2 majority from the Slovak parliament.A group of Slovak National Council members released an explanation of the income tax bill, stating that it wants to “reduce the tax burden in connection with the sale of virtual currencies, thereby simplifying their use in everyday life.”It is proposed to tax income at a tax rate of 7% when selling virtual currency after one year has passed since its acquisition,” the law stated. Crypto held for shorter periods would be integrated with other taxable income, it added. The bill was read a third time by the Council, Slovakia’s only legislative body, on June 28.
One method to increase the appeal of cryptocurrencies is for European Union members like Slovakia to be able to impose their own tax regulations on cryptocurrencies. Portugal’s tax incentives were a big part of what made the country appealing to the industry, but last year, officials announced a U-turn on that advantageous treatment.