Czech authorities have approved the abolition of income tax for profits from the sale of cryptocurrencies

The amendment was unanimously approved by the lower house of Parliament and sent to the Senate for consideration

06.12.2024 - 15:35

3 min

What’s new? The lower house of the Czech Parliament unanimously approved an amendment to the income tax law, according to which citizens will be exempted from paying tax on cryptocurrency profits if certain conditions are met. Thus, crypto income of less than 100 000 Czech koruna ($4217) and assets held in an account for more than three years will not be taxed.

Material by The Česko

What else is known? After being passed by the Chamber of Deputies, the amendment went to the upper house of Parliament, the Senate, for consideration. If the amendment is approved, it will enter into force on January 1, 2025.

The amendment affects realized profits for individuals. In the case of the minimum threshold refers to the annual pre-tax income from the sale of cryptocurrencies, which must not exceed 100 000 Czech koruna.

Also, income from the sale of cryptocurrencies that have been in the possession of the investor for more than three years is exempt from the levy. In this case, the income before tax deduction should not exceed 40 million Czech koruna per year ($1,7 million).

It is noteworthy that the amendment takes into account such an aspect as the possibility of updating the network. If in the process of a hard fork, the user converts tokens to their new version, this does not interrupt the countdown of the three-year holding period.

The initiative does not affect cryptocurrencies as part of commercial assets that are used to conduct business — they are subject to the standard business tax.

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The reform is designed to make the PRC Special Administrative Region a leading offshore financial center

Last month, it was reported that the Japanese Parliament would consider reducing the tax on crypto income to 20%, and the South Korean Parliament, on the contrary, the introduction of a tax on crypto income from 2025.

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