crypto taxation in Czech republic - good news

[void]

today parliament of the Czech republic passed the law making these events tax free for individuals:
- sale of crypto up to 100k CZK (~4000 eur) per year (technically allowing using crypto assets for daily spending)
- profits from crypto after 3 years of holding (capped by 40M CZK ~ 1.6M EUR per year)

 

[JohnnyDoe]

They need to incentivize people to buy CZK.

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[void]

JohnnyDoe said:
They need to incentivize people to buy CZK.
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you overestimate the mental capacity of politicians 😀

many hold crypto themselves...

 

[ilke]

Babiš at Emergence was also a sight to see smi(&%

But yeah, pretty good news. MiCA is really, really awful anyway, though.

 

[diatessaron]

When crypto starts printing 4k is abslutely nothing.

 

[void]

diatessaron said:
When crypto starts printing 4k is abslutely nothing.
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for spending entirely in crypto is doesn't make any sense (4k is about 2 months of salary for an average Czech wage slave)
but it's a solution to avoid absurd taxable events when you want to purchase an article behind the pay wall online with lightning, to pay for "anonymous" VPS with monero, to test bitcoin ATM or simply to sell to your friend 100 EUR to play with his first smartphone hot wallet - let's appreciate these baby steps

 

[diatessaron]

void said:
let's appreciate these baby steps
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Appreciate the baby steps, because that's all those who appreciate such things are going to get.

 

[void]

diatessaron said:
Appreciate the baby steps, because that's all those who appreciate such things are going to get.
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what should I say other than usual... more freedom is better than less

 

[Hest]

Practically speaking, how do you prove 3 years holding? I guess no guidelines on this in Czechia yet - but how do you provide evidence to the taxman in Germany, Luxembourg and other countries with a minimum holding period?

 

[TheCryptoAnt]

Hest said:
Practically speaking, how do you prove 3 years holding? I guess no guidelines on this in Czechia yet - but how do you provide evidence to the taxman in Germany, Luxembourg and other countries with a minimum holding period?
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have you heard of 'account statements'

 

[ilke]

Hest said:
Practically speaking, how do you prove 3 years holding? I guess no guidelines on this in Czechia yet - but how do you provide evidence to the taxman in Germany, Luxembourg and other countries with a minimum holding period?
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By default, you do not need to prove it, you just file your tax document as usual.

You would need to show them account statements, proof from an exchange, some kind of receipts, etc. if there was a check done on your taxes.

 

[void]

ilke said:
By default, you do not need to prove it, you just file your tax document as usual.

You would need to show them account statements, proof from an exchange, some kind of receipts, etc. if there was a check done on your taxes.
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for those practically interested in details one should be also aware of the fact that any one-off income (very vaguely defined in the law) over 5M CZK (200k EUR) must be reported to the tax office even if it's tax exempt

 

[Hest]

TheCryptoAnt said:
have you heard of 'account statements'
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I got my bitcoin a decade ago. In part through mining, part through exchanges that don't exist anymore. I do have enails and screenshots to back up my claims but no proper account statments. I can easily show my actual bitcoin addresses tho, e.g. by signing a message. This is bulletproof evidence of >3 years holding but I wonder if the tax office is too bureaucratic to accept blockchain proof. Hence I wonder what Luxembourg, Germany, etc specifically ask for.

 

[W Fish]

Hest said:
I got my bitcoin a decade ago. In part through mining, part through exchanges that don't exist anymore. I do have enails and screenshots to back up my claims but no proper account statments. I can easily show my actual bitcoin addresses tho, e.g. by signing a message. This is bulletproof evidence of >3 years holding but I wonder if the tax office is too bureaucratic to accept blockchain proof. Hence I wonder what Luxembourg, Germany, etc specifically ask for.
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How are BTC addresses and tx hashes any different than bank statements and transfer orders? 😉
Even if there was a taxman stupid enough not to, then a judge definetely would.

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Expense invoices with cashback (in crypto). Crypto on/offramp with invoices. Crypto SOF solutions.

 

[jon1234]

Watch out - if you ever stop being a tax resident, you could be due tax on the unrealised gains (unless you cash it ALL out)

This is the major problem with the Portugal scheme

 

[providenceventurer]

Hest said:
I got my bitcoin a decade ago. In part through mining, part through exchanges that don't exist anymore. I do have enails and screenshots to back up my claims but no proper account statments. I can easily show my actual bitcoin addresses tho, e.g. by signing a message. This is bulletproof evidence of >3 years holding but I wonder if the tax office is too bureaucratic to accept blockchain proof. Hence I wonder what Luxembourg, Germany, etc specifically ask for.
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Cashout through Dubai,let me know if you need any help there.