Slovaks are angry, by petition they want to abolish or reduce taxes on cryptocurrencies

The cryptocurrency market experienced a huge growth from the end of 2020 to the spring of 2021, which we did not “lose” even after the great collapse and stagnation that we witnessed in the first summer months.

It is therefore not surprising that cryptocurrencies also succumbed to a large number of Slovaks, who managed to achieve valuable profits since the end of 2020, but also large losses for those who saw only rapid gains in cryptocurrencies “at the top” and were lured by the crowd.

Everyone is subject to regulation, but due to high rates, it is common to hide income

Regardless, however, all those who trade cryptocurrencies in our country are subject to regulation, which is set up quite unhappily in Slovakia. We are talking about a relatively complicated system of taxation extensive article informed in March, and despite various initiatives no changes have been made so far.

The taxation of cryptocurrencies in Slovakia is currently still regulated according to methodological guidelines MF SR č.MF/10386/2018-721 to the procedure of taxation of virtual currencies, which entered into force on October 1, 2018.

The achieved income from trading in cryptocurrencies, ie taxable bases, can be reduced by demonstrably incurred expenses to achieve them, which represent your purchase prices and with them possible losses from the sale of other digital names or, for example, energy costs in their extraction.

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After deducting these expenses and costs, which “fortunately” guarantee that you do not have to pay any tax in case of loss, the rate of the final tax together with the levies is at the level of minimum 33% and maximum 39%which is definitely not a small amount.

Rates in the surrounding countries are half as low, Slovaks have already established a petition

For comparison, in neighboring countries such as the Czech Republic or Poland, these rates are between 15% and 17%, respectively, while in Hungary, for example, this tax is decreases from a high of 30.5% to 15% precisely because of the will to achieve a transparent market in which revenues from cryptocurrencies will not be hidden due to the high tax, as is undoubtedly the case here.

Also because of that, it was established in Slovakia a few days ago, etc. petition for the abolition or reduction of this tax, which has been signed by 65 people since August 17. Its applicants are also calling for a reduction precisely because of the much lower rate in the surrounding countries, which do not throw too good a light on Slovakia.

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It should be noted, however, that the information on possible changes in this legislation, which should be under the thumb of the Ministry of Finance (MF SR), is also spoken directly in program of the Government of the SR, while specific measures to reduce this tax are also in the package Kilečko 2 from the Ministry of Economy (MH SR).

The editorial staff of FonTech.sk is already in connection with these facts she contacted both ministries in early June. While the Ministry of Economy of the Slovak Republic confirmed the preparation of changes, the Ministry of Finance of the Slovak Republic stated in its statement that it does not anticipate any changes in the principles of taxation of cryptocurrencies in Slovakia and the rate will remain at 33% and 39% respectively.

It is thus questionable whether and in what time frame we can expect the reconstruction that this tax system urgently needs. Not only companies and institutions are demanding a change, but also smaller investors through a new petition, for which the tax is 33% extremely high.