Czech Republic exempts Bitcoin holders from capital gains tax
Czech Republic becomes more loyal to Bitcoin
Czech President Petr Pavel has signed a law that exempts Bitcoin holders from capital gains tax if they hold the cryptocurrency for more than three years. This was reported by the BTC Prague conference organizers on their official X (Twitter) page.
According to the announcement, this move is intended to encourage long-term investments in Bitcoin by providing tax benefits to investors who retain their assets beyond the specified period. The decision aligns with the global trend of adapting tax regulations to the rapidly evolving cryptocurrency market.
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Cryptocurrency law
At the end of last year, the Czech Parliament voted in favor of an amendment that eliminates income tax on the sale of Bitcoin and other crypto assets.
Now, individuals are not required to pay capital gains tax on Bitcoin and other crypto asset profits if two conditions are met:
- The total gross income from crypto asset sales within a tax year must not exceed 100,000 CZK (approximately $4,000).
- The crypto assets must be held for more than three years.
Previously, profits from cryptocurrency transactions were subject to capital gains tax at rates ranging from 0% to 19%, depending on the nature of the profit and other factors. The standard tax rate for personal income from cryptocurrency trading was set at 15%.
Meanwhile, the Czech Republic is actively discussing the creation of a state-level Bitcoin reserve, a move that has raised concerns in the United States.
