Starting January 1, cryptocurrencies in the Czech Republic will be taxed similarly to stocks, following the approval of a new bill by the Czech Parliament.
Here are the key details of the upcoming changes:
- Income from the sale of cryptocurrencies will only be taxed if the total annual transaction volume exceeds 100,000 CZK.
- A “holding period test” will be introduced: If you hold your cryptocurrency for over three years, no tax will be charged on any potential sale.
- In all other cases, cryptocurrency income will be taxed.
- Frequent traders are advised to maintain detailed records of their transactions to match sales with purchase prices and determine the correct tax base.
For taxpayers, the income from cryptocurrency transactions will be reported under the “other income” section of their tax declaration, with a tax rate of 15%.
