Hungary reduces tax on cryptocurrency
13.05.2021 | auglovoi
Hungary intends to halve the tax on profits from transactions with cryptocurrencies. Currently, the tax rate including social deductions is at 30.5%, which corresponds to the current personal income tax on “other” income. Minister of Economy Mihai Varga proposed to halve the amount of deductions, to 15%.
Thus, according to the official, the country will be able to attract more cryptocurrency traders and other interested persons, including from other jurisdictions, where the tax regime is not so attractive. This will generate additional revenue for the treasury, which will help cope with the economic consequences of the coronavirus restrictions.
This is where Hungary differs from many other countries. For example, Russia is planning to reduce the unaccountable minimum, and South Africa and South Korea are considering strict regulation, while India wants to ban any kind of free digital assets at all, the Eastern European country has chosen the exact opposite path - creating a favorable regulatory climate for the entire financial technology industry.