Hungarian government plans to reduce tax on cryptocurrency income by 50%

Finance Minister Mihaly Varga announced in a Facebook video that Hungary will cut its tax rate on cryptocurrency income by 50%. The move will lower the income tax from 30% to 15% and place the tax on cryptocurrency at the same rate as the stock. Varga's comments in the video described Hungary's economic recovery plans, including updated tax regulations. Commenting on the proposed plans, Varga said that "it could bring billions of Hungarian forints to the budget". The decision to reduce the tax on cryptocurrency income is a turning point for the country and a statement by the Hungarian government positively targeting cryptocurrency traders and investors. While other countries struggled to establish proper cryptocurrency regulations, Hungary became relatively pro-crypto as part of a larger effort to boost its covid-disaster economy. Until last year, Hungary did not have specific regulations for taxing cryptocurrency income. Consequently, trading of digital assets is classified as "other income" for tax purposes. In terms of the popularity of the cryptocurrency in Hungary, the country has relatively modest trading activity. However, after the latest news from the Hungarian government, cryptocurrency activity levels are likely to see a sharp increase as traders and investors take advantage of the favorable tax rate. Hungary has also begun to discuss the possible distribution of its CBDC, as most of the world's major economies have begun drafting digital currencies with central banks. They recently attended a roundtable meeting for a number of countries to outline the future of CBDCs. Disclaimer: This article is for informational purposes only. It is not offered and is not intended to be used as legal, tax, investment, financial or other advice.

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