The Czech parliament has voted for an amendment that exempts the sale of bitcoins and other crypto assets from income tax, said renowned financial analyst and entrepreneur Christian Čepčar.
According to Pavel Rusnak, co-founder of SatoshiLabs, the developer of the world-famous Trezor hardware wallet, the amendment was adopted on December 6 by 169 votes. Thus, it was supported by almost all parliamentarians.
Results of the vote in parliament
Individuals are now exempt from paying capital gains tax on profits from Bitcoin and other crypto assets, provided that two conditions are met: the total gross income from the sale of crypto assets in the tax year does not exceed CZK 100,000 and the crypto assets must be held for more than three years.
This reform is in line with EU regulations, and the Czech government is also seeking to create a more favorable environment for crypto investors and participation in the crypto market.
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 derived from cryptocurrency trading was set at 15%.
However, there are technical ambiguities in the legislation, including methods for verifying the duration of ownership.
