Are you an active cryptocurrency trader in Czechia? If you are, then you’re obligated to pay crypto tax in the Czech Republic. But how does it work? Is it income tax or capital gains tax? What about crypto mining, staking, NFTs, or DeFi transactions?
In this article, we explain all the important aspects of cryptocurrency taxation in Czechia for the year 2024. You will get to know about the tax rates, exemptions, filing deadlines, and how to ease the process using the filing software Kryptos.
The Situation of Crypto Tax in Czech Republic
In the Czech Republic, cryptocurrencies are not legal tender.
They remain classified as assets for taxation purposes and fall under the guidelines set by the European Union.
Tax on earnings and gains made from crypto currency activities are payable by both individuals and businesses.
The crypto industry is actively monitored by the Czech government under the AMLD-5 rules (KYC, exchange reporting, and wallet tracking).
Key takeaway: Crypto in Czechia is fully taxable. That means crypto is not recognized as official money.
What is the Tax Liability for an Individual?
For Individuals
- A 15% flat tax rate on crypto gains.
- Applies to trading, selling crypto for fiat, swapping one crypto for another, and staking or mining.
For Businesses
- A 19% tax rate on income derived from crypto.
- Applies to exchanges, professional mining, and businesses accepting cryptocurrency as payment.
Important: Failing to report your cryptocurrency income can be assessed penalties through the legal process.
Income Tax vs. Capital Gains Tax
- Czechia, unlike some countries, does not impose a specific capital gains tax on cryptocurrency. Instead,
- Cryptocurrency gains = taxed as personal income at 15%.
- If total income exceeds CZK 1,935,552 (2023 cap) = taxed at23%.
Example
If you buy ETH for CZK 32,000 and sell it for CZK 40,000 (after CZK 1,200 fees), then your taxable gain is CZK 6,800.
Tax-Free vs. Taxable Cryptocurrency Transactions
TAX-FREE TRANSACTIONS
Holding crypto long-term.
Transferring between your personal wallets.
Buying crypto with fiat currency.
TAXABLE TRANSACTIONS
Selling crypto to fiat.
Trading crypto for crypto.
Getting paid to mine, stake, and receive DeFi rewards.
Receiving altcoins from airdrops/forks/nft's.
When paying for goods/services with crypto.
Mining & Staking & Other Cryptocurrency Earnings
Mining Rewards: 15% for individuals and 19% for companies(companies that mine must have a license).
Staking Rewards: Considered ordinary income and taxed at 15%(individuals) businesses pay 19%.
Airdrops/Forks: Counted as income on the day you receive them.
NFT: Taxed as ordinary income or trade like any other sale of crypto. 15% for individuals, 19% for businesses.
ICOs & DAOs: Considered ordinary income or crypto swapping. Same taxes apply as discussed above.
Can the Government of the Czech Republic Monitor Cryptocurrency?
Indeed. According to AMLD-5 EU legislation, exchanges are required to:
Conduct checks pertaining to 'Know Your Customer' protocols.
Disclose transaction information to authorities if they inquire.
For this reason, it is almost impossible to hide your profit from cryptocurrencies.
Tax Deductions and Exemptions
The Czech Republic provides multiple credits to minimize tax liability.
General Personal Credit: CZK 30,840 (tax year 2023).
Child Tax Credit.
- Dependent Spouse Credit: CZK 24,840 (Context: valid to dependent spouse income below CZK 68,000 per year).
- Disability Credit: Up to CZK 16,140.
- Student Credit: CZK 4,020 (for students not exceeding the ages of 26 or 28).
Deadlines for Reporting Cryptocurrency Taxes
The deadline for filing is generally the 3rd of April 2024.
The online filing deadline is the 2nd of May 2024.
Refunds are issued within 30 days of acceptance.
International Considerations
If you trade in and out of jurisdictions, EU-wide regulations are in effect and you should always consider compliance in the other jurisdictions in which you operate to avoid double taxation.
How to file Cryptocurrency Taxes in Czechia
You file a tax return:
- On paper (standard forms).
- Online via either Czech Taxes Online, NeoTax, or others.
Kryptos: Simplifying cryptocurrency tax reporting in Czechia
Tracking every trade is tedious and this is where Kryptoscan assist you.
Why Kryptos?
Automatic Data-Import: Link your wallets (or exchanges).
Country-specific reporting.
Total Cost Basis Methods: FIFO, and Weighted Average.
Exhaustive Reporting which includes your capital gain/loss. Cryptos that you have either mined, staked, or used in the course of DeFi activity, and NFTs that were sold for profit will also be included.
Tax Optimization - tax deductions and tax credits will be tracked.
How to do it.
How to Use Kryptos
Step 1 - Registration: Set an account up
Step 2 - Set Preferences: Enter your country (Czech Republic), currency type, and accounting methods.
Step 3 - Import Transactions: Link your wallets/exchange accounts.
Step 4 - Get Reports: You will get detailed tax reports in real-time.
Step 5 - File Taxes: Once you review the information file with the local tax authority's portals.
FAQ
1. What is the crypto tax rate in Czechia?
Personal: 15% (23% for above average income).
Business: 19%.
2. Is crypto mining taxable?
Yes - Individuals will pay 15%, businesses will pay 19%.
3. Are crypto gifts/donations taxable?
Gifts: Taxable income
Donations: 15% of the tax base is deductible.
4. Do I need to report NFTs?
Yes - NFT sales/swaps are taxable and would be considered like other cryptocurrency trades.
5. When is the deadline to file my taxes regarding crypto?
April 3rd (paper) / May 2nd (online)
Conclusion
Note the Czech Republic treats crypto assets as taxable assets not as legal tender. Remember the tax is 15%-23% for individuals and 19%for business. Individuals who self-advocate in compliance while in the realm of DeFi, mining, or NFT must caution. Investment opportunities whether mining or NFT are taxable.
Instead of calculating manually, utilize tools like Kryptos to assist Czech investors file with compliance and accuracy. It is faster than manually calculating taxes and has compatible platforms allowing the user to file online quickly.
| Step | Form | Purpose | Action |
|---|---|---|---|
| 1 | 1099-DA | Reports digital asset sales or exchanges | Use to fill out Form 8949. |
| 2 | Form 1099-MISC | Reports miscellaneous crypto income | Use to fill out Schedule 1 or C. |
| 3 | Form 8949 | Details individual transactions | List each transaction here. |
| 4 | Schedule D | Summarizes capital gains/losses | Transfer totals from Form 8949. |
| 5 | Schedule 1 | Reports miscellaneous income | Include miscellaneous income (if not self-employment). |
| 6 | Schedule C | Reports self-employment income | Include self-employment income and expenses. |
| 7 | Form W-2 | Reports wages (if paid in Bitcoin) | Include wages in total income. |
| 8 | Form 1040 | Primary tax return | Summarize all income, deductions, and tax owed. |
| Date | Event/Requirement |
|---|---|
| January 1, 2025 | Brokers begin tracking and reporting digital asset transactions. |
| February 2026 | Brokers issue Form 1099-DA for the 2025 tax year to taxpayers. |
| April 15, 2026 | Deadline for taxpayers to file their 2025 tax returns with IRS data. |
| Timeline Event | Description |
|---|---|
| Before January 1, 2025 | Taxpayers must identify wallets and accounts containing digital assets and document unused basis. |
| January 1, 2025 | Snapshot date for confirming remaining digital assets in wallets and accounts. |
| March 2025 | Brokers begin issuing Form 1099-DA, reflecting a wallet-specific basis. |
| Before Filing 2025 Tax Returns | Taxpayers must finalize their Safe Harbor Allocation to ensure compliance and avoid penalties. |
| Feature | Use Case Scenario | Technical Details |
|---|---|---|
| Automated Monitoring of Transactions | Alice uses staking on Ethereum 2.0 and yield farming on Uniswap. Kryptos automates tracking of her staking rewards and LP tokens across platforms. | Integrates with Ethereum and Uniswap APIs for real-time tracking and monitoring of transactions. |
| Comprehensive Data Collection | Bob switches between liquidity pools and staking protocols. Kryptos aggregates all transactions, including historical data. | Pulls and consolidates data from multiple sources and supports historical data imports. |
| Advanced Tax Categorization | Carol earns from staking Polkadot and yield farming on Aave. Kryptos categorizes her rewards as ordinary income and investment income. | Uses jurisdiction-specific rules to categorize rewards and guarantee compliance with local tax regulations. |
| Dynamic FMV Calculation | Dave redeems LP tokens for Ethereum and stablecoins. Kryptos calculates the fair market value (FMV) at redemption and during sales. | Updates FMV based on market data and accurately calculates capital gains for transactions. |
| Handling Complex DeFi Transactions | Eve engages in multi-step DeFi transactions. Kryptos tracks value changes and tax implications throughout these processes. | Manages multi-step transactions, including swaps and staking, for comprehensive tax reporting. |
| Real-Time Alerts and Updates | Frank receives alerts on contemporary tax regulations affecting DeFi. Kryptos keeps him updated on relevant changes in tax laws. | Observe regulatory updates and provide real-time alerts about changes in tax regulations. |
| Seamless Tax Reporting Integration | Grace files taxes using TurboTax. Kryptos integrates with TurboTax to import staking and yield farming data easily. | Direct integration with tax software like TurboTax for smooth data import and multi-jurisdictional reporting. |
| Investor Type | Impact of Crypto Tax Updates 2025 |
|---|---|
| Retail Investors | Standardized crypto reporting regulations make tax filing easier, but increased IRS visibility raises the risk of audits. |
| Traders & HFT Users | To ensure crypto tax compliance, the IRS is increasing its scrutiny and requiring precise cost-basis calculations across several exchanges. |
| Defi & Staking Participants | The regulations for reporting crypto transactions for staking rewards, lending, and governance tokens are unclear, and there is a lack of standardization for decentralized platforms. |
| NFT Creators & Buyers | Confusion over crypto capital gains tax in 2025, including the taxation of NFT flips, royalties, and transactions across several blockchains. |
| Crypto Payments & Businesses | Merchants who take Bitcoin, USDC, and other digital assets must track crypto capital gains for each transaction, which increases crypto tax compliance requirements. |
| Event | Consequences | Penalties |
|---|---|---|
| Reporting Failure | The tax authorities can mark uncontrolled revenues and further investigate. | Penalty fines, interest on unpaid taxes and potential fraud fees if they are deliberately occurring. |
| Misreporting CGT | Misreporting CGT Error reporting profits or losses can trigger the IRS audit. | 20% fine on under -ported zodiac signs, as well as tax and interest. |
| Using decentralized exchanges (DEXs) or mixers without records | The IRS can track anonymous transactions and demand documentation. | Possible tax evasion fee and significant fine. |
| Disregarding Bitcoin mining tax liabilities | Mining reward is considered taxable income, and failure of the report can be regarded as tax fraud. | Further tax obligations, punishment and potential legal steps. |
| Foreign crypto holdings: Non-disclosure | Foreign-accepted crypto FATCA may be subject to reporting rules. | Heavy fines (up to $ 10,000 per fracture) or prosecution for intentional non-transport. |
