How are cryptocurrencies regulated in Slovakia?

“We perceive virtual currencies as having two roles now: one as a means of exchange and the other, as an investment asset,” says Slovakia’s Finance Minister Kažimír “We are really interested in solving the issues related to taxation of the income stemming from its exchange for goods, as well as of the income stemming from trading such a cryptocurrency.” Slovakia evidently is tackling the issue of crypto taxation, if not at least with a directive issued in March, clarifying a number of questions concerning the topic.

Cryptocurrency taxes for individuals in Slovakia
For private individuals profits made from cryptocurrencies are taxable. Thus, income from the sale of cryptocurrencies is listed under "other income" in personal income tax return. The taxable amount can be lowered by corresponding costs, yet it has to be noted, that this only is possible to the level of the income obtained. As for other income, the tax rates applying are either 19% or 25%. Whereas the first applies for a total income lower than 35.022,31€, the latter if the total income is above this.

Cryptocurrency regulations for businesses in Slovakia
For those operating with cryptocurrencies for business purposes, virtual currencies are defined to be financial assets. To be exact, from accounting point of view cryptocurrencies are short-term financial assets other than cash. Hence, losses cannot be carried forward. The assets are priced at market value the moment of transaction. Furthermore, taxation to be considered by businesses or individuals is tax applying to the mining of virtual currencies. In this case, the cryptocurrencies obtained will be booked at market value as soon as they are sold or traded.

Government statements on cryptocurrencies in Slovakia
In March 2018 the Ministry of Finance in Slovakia released a methodological guideline to clarify the taxation of virtual currencies. Finance Minister Peter Kažimír stated clearly, that a taxation is necessary. Tax experts consider the directive to be a "preliminary solution meant to cover the year 2017" and are sure that further regulations will follow. Further, Kažimír calls for a global solution in terms of regulation as Slovakia, together with many other countries, faces the issue of not being able to enact any regulations or obligations outside the country.

Free Crypto Tax & Portfolio Software

In recent years, it has been observed that the trade in cryptocurrencies such as Bitcoin, Litecoin and Ethereum has steadily increased. However, many cryptocurrency owners do not consider that the profits or losses from trading cryptos are taxable. Therefore Blockpit offers software that meets the requirements for traders of Bitcoin, Ether and Co. Besides the webapp Blockpit also offers a mobile app that is free for iOS and Android. With the API import, transactions can be imported from different exchanges without much effort. Taxes on cryptocurrencies do not need to be complicated – use Blockpit

Crypto Tax Software from Blockpit

Disclaimer
The information provided in this blog post is for general information purposes only. The information was completed to the best of our knowledge and does not claim either correctness or accuracy. For detailed information on crypto regulations we recommend contacting a certified legal advisor in the specific country.  
As this blog post refers to international crypto laws, the content will only be available in English. If you have any questions, please feel free to contact us on one of our social media channels.

Sources
https://spectator.sme.sk/c/20733083/financial-minister-plans-to-start-taxing-bitcoin.html
https://asbgroup.eu/news/changes-slovak-tax-legislation/
https://www.tpa-group.com/cee-news-slovakia-accounting-for-crypto-currencies/

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp
Share on telegram
Telegram

Disclaimer: The information provided in this blog post is for general information purposes only. The information was completed to the best of our knowledge and does not claim either correctness or accuracy. For detailed information on crypto regulations, we recommend contacting a certified legal advisor in the respective country. If any questions occur, feel free to contact us on our social media channels.

Want more? Get a weekly gist straight to your inbox

Our newsletter is your source to the latest crypto tax info