Czech Republic: Individual income tax exemption for income from transfer of cryptoassets passed by upper house of Parliament

The upper house of Parliament (Senate) on January 22, 2025, passed legislation that would exempt certain income of individuals from the transfer of cryptoassets from individual (personal) income tax.

The exemption would follow principles similar to those applicable to the exemption for income from the transfer of securities.

• Income test: Total gross income from sales of crypoassets (other than electronic cash tokens) for the tax period cannot exceed CZK 100,000, and the taxpayer’s gross income for the tax period cannot exceed CZK 40 million.
• Time test: The cryptoassets must have been held by the taxpayer for more than three years immediately before transfer.

The legislation now awaits the president’s signature and would become effective on the day following the date of its promulgation in the Collection of Laws.

KPMG observation

The legislation does not define cryptoassets or address issues relating to interruptions of the time test for certain exchanges of cryptoassets. These ambiguities may complicate the application of the provisions.

Read a January 2025 report prepared by the KPMG member firm in the Czech Republic