Crypto & Capital Gains Tax Calculator
Use the Crypto & Capital Gains Calculator to estimate personal income tax on cryptocurrency profits and capital gains in Czechia. Simply input any crypto earnings for the year alongside additional capital gains, and press calculate. The tax calculator will instantly estimate your annual income tax and the net income you can expect after taxes.
How to use the Crypto & Capital Gains calculator
To use the calculator, input your net income from crypto in the first field. Fill in the second field with any additional income from capital gains. Pressing calculate will then add your crypto and capital gains income together, and calculate income tax at a 15% or 23% rate. The tax rate of 15% is for income under CZK 1 935 552, and 23% for income over this limit. Also note that the calculator automatically deducts the standard taxpayer discount of CZK 30 840 from its results. If the amount of income tax = zero, the standard taxpayer’s discount is greater than the amount of taxable net income. Thus, in this case, no taxes on crypto or capital gains are due.
How are cryptocurrencies viewed in Czechia?
In the Czech Republic, the Financial Administration and the Czech National Bank (CNB) treat cryptocurrencies as commodities, not as investments. This means the 3-year time test does not apply to bitcoin and altcoins (sometimes-called digital tokens). As commodities, cryptocurrencies are viewed as: traded (for real money, or other cryptocurrencies), produced (via mining), and exchangeable (on the real market). They are intangible assets, similar to stocks, and as such proper taxes should apply to any profits from them.
What are the taxes on crypto in Czechia?
Note that in the Czech Republic, only profits from crypto are taxable, not their possession. Taxable events for crypto as well as capital gains then file under “other income” according to §10 of the Income Tax Act “Other income” is a column on the tax return that is completely different from reporting dependent or self-employed income. It also includes capital gains. Tax rates for crypto and capital gains then apply at 15% or 23%. The 15% rate is for taxpayers whose income is under CZK 1 935 552. Earners above this threshold pay the 23% tax rate.
When to file taxes on crypto & capital gains
Any income from the sale or trading of digital assets and capital gains requires proper taxation. This means you need to pay taxes anytime one of these investments generates profit. However, only the amount of profit is taxable. If there is any loss (example: selling for less than the original purchase price), you do not declare any tax.
How to calculate net income from crypto
Calculate crypto net income by subtracting the original purchase price and transaction fees from the final sale price. This can include the difference between crypto mining costs and revenue from it, or profit from inherited / donated cryptocurrencies. It can be the difference between production costs (service, exchange), and revenues from their sale for crypto. The remainder is the taxable profit (tax base), which tax rates of 15% or 23% then apply.
Where to find crypto purchase price
Two common ways to determine the purchase price of sold cryptocurrencies are FIFO (First In First Out), and arithmetic average. In the event of a sale, FIFO uses the purchase price of the oldest assets to report the purchase price. Arithmetic average takes the average mean between the oldest purchases for taxable sales events.
FIFO (First In First Out) example: You purchase one crypto unit at CZK 10,000, and another unit at CZK 20,000. Then, later on, you purchase more units, and after this sell two (for CZK 22,000 each). Using FIFO, the taxable events become 22,000 - 10,000 (for the first sale) plus 22,000 - 20,000 (for the second). The tax base is thus CZK 14,000, if not accounting for any transaction fees. These you will also deduct from the purchase price, but let’s keep this calculation simple.
Arithmetic average in this case would use the average mean between the oldest purchase prices: (10,000 + 20,000)/ 2 = 15,000. The tax base then becomes 44,000 (for 2 units) - 30,000 = CZK 14,000. Note, however, that while in this case both methods have the same results, these calculations can sometimes vary extremely. Thus, it’s always wise to calculate using both methods to find the most advantageous tax reporting method for you.
How to declare capital gains and crypto as a freelancer
If freelancing on a trade license (živnostenský list) in Czechia, you file the profits from crypto and capital gains together. These fall under “Other Income” on the tax return, and you calculate the final tax at a 15% or 23% tax rate. Note, however, it’s always wise to declare any income from capital gains and crypto as private income. If you declare these as business income, social security and health insurance premiums will be higher.
When is the deadline to file income taxes?
The deadline to file a tax return for the previous fiscal year in the Czech Republic falls in March every year. March 31st is thus most often the last day to file, if not filing taxes with a certified tax accountant.
Where to hire professional tax assistance
Want help filing taxes accurately, on-time, and to your advantage? Simplify the entire process with Pexpats’ professional tax accounts. Our agents can file taxes on the behalf of both freelancers and full-time employees, no matter how complex the tax return. We investigate and suggest the best tax regime for each individual case, including claimable tax relief, discounts and deductibles. Just let us know how we can help, and we’ll start on your taxes immediately.