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]

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]

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]

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

 

[void]

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]

have you heard of 'account statements'

 

[ilke]

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]

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]

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]

How are BTC addresses and⁢ tx hashes any different than bank statements and transfer orders? 😉
Even if there was a︀ taxman stupid enough not to, then a judge definetely would.

 

[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]

Cashout through Dubai,let me know⁢ if you need any help there.