Slovakia has taken a major step towards encouraging the use of digital currency, with lawmakers voting 112-2 in favor of a law that will reduce taxes on the sale of digital currency. The income tax bill is intended to reduce the tax burden in connection with the sale of virtual currencies, thereby simplifying their use in everyday life, according to an explanatory document issued by a grouping of members of the Slovak National Council. The bill proposes that when selling virtual currency after one year has passed since its acquisition, it is taxed at a rate of 7%, while crypto held for less long periods would be included alongside other taxable income. This vote constituted the third reading of the bill in the Council, Slovakia’s sole legislative body.
The move is part of a trend among European Union member states to set their own tax rules for crypto, in order to boost its popularity. Portugal, for example, has offered tax breaks to the sector, though ministers announced a U-turn on that favorable treatment last year.