Source: https://www.akmv.sk/en/blog/business-law/latest-legislation-related-to-virtual-currencies-in-the-slovak-republic
Timestamp: 2019-04-20 07:07:24+00:00

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This article includes an overview of the latest legislation related to virtual currencies in the Slovak Republic.
The Ministry of Finance of the Slovak Republic (hereinafter referred to as "MF SR") issued pursuant to Section 160 2 of Act no. 563/2009 Coll. on tax administrationn the amendment of some laws, a methodological guideline whose main objective was to ensure a uniform interpretation of the taxation of income in connection with the sale of virtual currency under Act no. 595/2003 Coll. (hereinafter referred to as the "Income Tax Act") as in the case of virtual currency accounting operations.
These guidelines concerned the method of taxation of the virtual currency as well as the method of its valuation and accounting.
The full wording of the methodological guidelines can be found here.
The Income Tax Act contains, in § 2 a definition of basic terms, (a) determines what is meant by the sale of virtual currency: "virtual currency selling is the virtual currency exchange for assets, the exchange of virtual currency for another virtual currency, the exchange of virtual currency for the provision of the service or virtual currency conversion."
The definition of virtual currency has been included in the Income Tax Act with effect from 1 October 2018 and the amendment in question has also introduced new provisions governing the taxation of revenue generated by the sale of virtual currency.
When taxing income from virtual currency, a taxpayer is understood as a non-business person i.e. he person regulated in § 2 let. d) of the Income Tax Act, but also an entrepreneur, i.e. the person regulated in § 17 (1) of the Income Tax Act.
Virtual currency is within the meaning of Section 8 (1) let. t) included among so-called other income. Income from the sale of virtual currency, which the taxpayer acquires by the way called mining is included within the meaning of § 8 (1) of the Income Tax Act to the Subsidiary Tax Base in the tax period of the realization of the sale of this virtual currency. There are several ways how to get revenue from virtual currency sales. First, by exchanging virtual currency for other virtual currencies exchanging virtual currency for the provision of a service, and exchanging virtual currency for assets.
The Income Tax Act in Section 17 (3) let. n) and let. o) further determines what is not included in the tax base. This is the income that comes from virtual currency acquired by the so-called mining in the tax period of its utilization. This revenue shall be included in the tax base in the virtual currency sales tax period. Additionally, the amount that represents the difference between the real value of virtual currency and its purchase price is not included in the tax base.
However, under Section 17 (43) of the Income Tax Act it is considered as part of the tax base from the sale of virtual currency that has been exchanged as income received within the corresponding tax period in which such exchange takes place by using the exchange value of the exchanged virtual currency at realalue at the exchange date.
The issue of tax expenses in relation to virtual currency is regulated in § 19 (2) let. (v) of the Income Tax Act. As a tax expense, expenditures may be used to the total amount of virtual currency entry prices in the taxable period in which they are sold up to the amount of the revenue from their sales. The concept of entry price is clarified by § 25b of the Income Tax Act.
The entry price of virtual currency is, on one hand, the acquisition price (on purchase) and the realalue (in the case of exchange of one virtual currency for another).
Under Section 27 (13) of the Act on Accounting the real value of the virtual currency is the market price on the valuation day according to § 24 (1) let. a) determined in a manner set by the accounting entity from the selected public market with a virtual currency. During the accounting period, the entity uses the same method of determining the real value for the given virtual menu.
The National Bank of Slovakia has published its opinion reagarding issuing and trading with virtual currency using cryptographic / encryption operations, cryptoms (eg bitcoin, ethereum, IOTA, ripple), that says: "this activity is not regulated and supervised by the National Bank of Slovakia. Virtual currencies are not national currencies and therefore do not fall under national regulations. European legislation, including the Slovak legal order, do not regulate and exclude activities related to virtual currency.
An authorization to perform regulated activities, whether foreign exchange license, authorization to provide payment services, issuance of electronic money or other authorization issued by the National Bank of Slovakia, is not related to the issuance and trading of cryptocurrencies even in case of purchase or sale Cryptocurrency for Euro currency or a foreign currency. No entity supervised by the National Bank of Slovakia is authorized to purchase or sell cryptocurrencies for the Euro currencyr foreign currency within the scope of its permitted activity.
The Ministry's measure is linked to § 4 (2) of the Act on Accounting. In the provisions of § 17 (10) Accounting Policies we find the principles for the breakdown of assets and their accounting. In the provisions of § 46 (6) Accounting policy measures provides for the content a definition of the different accounting groups.
The Ministry's measure is linked to § 4 par. 2 of the Act on Accounting.
In the provisions of § 4 (13) The delimitation of items is regulated by the so called cash book. Provision of Section 12 (6) “In the case of a payable acquisition of virtual currency, the acquisition of virtual currency is accounted in the book of short-term financial assets at real value under § 27 (13) of the Act. "
Regarding to the opinion of the Ministry of Finance of the Slovak Republic, which was sent to us on 10 January 2019 there is currently no legislation that completely specifies the conditions of a cryptocurrency in Slovakia. There is just some specific legislation considering area of ​​taxation and billing of virtual currencies. Otherwise, the “virtual currency” is not directly prohibited in any of the Slovak legal act.
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References: § 2
 § 2
 § 17
 § 8
 § 19
 § 25
 § 24
 § 4
 § 17
 § 46
 § 4
 § 4
 § 27