Cryptocurrencies and exemption of the sale?

The amendment is currently heading to the Senate where its approval is still expected.

Until now, unlike securities and shares, there was no limit or time test for cryptocurrencies after which their sale would be exempt. But now there is a change and the amendment introduces a tax exemption if income from crypto-assets, i.e. of their paid transfer (with the exception of an electronic money token), will not exceed the amount of CZK 100,000 in a tax period.

The amendment also states the so-called time exemption test which says that if the holding period of the crypto-asset and the moment of its sale is longer than 3 years, this income is exempt up to the amount of income of CZK 40 million. The mentioned limit of CZK 40 million is valid for the total of all income from transfers of securities, shares and crypto-assets which are therefore sold after 3 years from acquisition.

However, it should also be remembered that the exemption does not apply if the crypto-asset was part of the business property within 3 years of the end of the activity from which income from self-employment flows. We will continue to monitor the situation and will inform you if there are any changes.

Interested in more information on cryptocurrency taxation? Feel free to read our older article. https://www.crowe.com/cz/cs-cz/news/kryptomeny-a-dane