GetBlock Magazine – What happened? The lower house of the Czech Parliament unanimously adopted an amendment to the income tax law, according to which citizens will be exempt from paying tax on profits in cryptocurrency, subject to certain conditions. Thus, crypto income in the amount of less than 100,000 Czech crowns ($4,217) will not be taxed, as well as assets stored in an account for more than three years.
Material The Česko
What else is known? After adoption by the Chamber of Deputies, the amendment was sent to the upper house of Parliament, the Senate, for consideration. If the amendment is approved, it will come into force on January 1, 2025.
The amendment affects the realized profit for individuals. In the case of the minimum threshold, this refers to the annual income from the sale of cryptocurrencies before taxes, which should not exceed 100,000 crowns.
Also exempt from the tax is income from the sale of cryptocurrencies that have been in the investor’s possession for more than three years. In this case, the income before tax should not exceed 40 million crowns per year (1.7 million dollars).
It is noteworthy that the amendment takes into account such an aspect as the possibility of updating the network. If during the hard fork the user converts tokens to their new version, this does not interrupt the three-year holding period.
This initiative does not affect cryptocurrencies as part of commercial assets that are used for doing business – they are subject to the standard tax for entrepreneurial activity.
Last month, it became known that the Japanese Parliament will consider reducing the tax on crypto income to 20%, and the South Korean Parliament, on the contrary, will introduce a tax on crypto income from 2025.