Taxation of crypto-assets: The coordination committee of the Chamber of tax advisers confirmed the methodology for the transitional period

Given that the amendment entered into force in the middle of the tax period, it raised a number of interpretation ambiguities. Key application questions for the 2025 tax year were definitively clarified within the minutes of the meeting between the Coordination Committee of the Chamber of Tax Advisers of the Czech Republic and the General Financial Directorate. The Financial Administration confirmed the presenters' conclusions in their entirety.

Parameters of Tax Exemption from 2025

The new legislation defines two separate titles for the exemption of income derived from the disposal of crypto-assets for individuals (excluding income from capital assets and assets included in business assets): 

• Value Limit: Income is exempt provided that the taxpayer's total income from such transfers does not exceed CZK 100,000 in a given tax period. Electronic money tokens (so-called stablecoins) are explicitly excluded from this exemption. 
• Time Test: Income from a disposal is exempt if the period between the acquisition and the disposal of the crypto-asset exceeds 3 years. This period is not interrupted in the event of an exchange or replacement of the crypto-asset by its issuer for another crypto-asset. In the case of acquisition by inheritance from direct relatives or a spouse, the holding period of the deceased is included in the test. 

Strategic Notice on the CZK 40 Million Limit

For the purposes of the exemption, crypto-assets are interpreted in accordance with the European MiCA regulatory framework. The law originally introduced an aggregate annual cap for exempt investment income in the amount of CZK 40,000,000. However, as we previously pointed out in our article Change in Investment Tax Exemption Limits, a legislative twist occurs with effect from 1 January 2026: while this limit is abolished for securities and business shares, the CZK 40 million cap remains permanently in place for crypto-assets. Furthermore, if this limit is exceeded for crypto-assets, it is not possible to claim their fair value as of 31 December 2024 as a tax-deductible expense; only historical acquisition costs can be applied.

Key Methodological Conclusions for the 2025 Transitional Period

The minutes from the Coordination Committee meeting confirmed the following rules for transactions executed during the year 2025: 

1. Retroactivity of the Time Test: The rules apply to all disposals made after 15 February 2025, regardless of when the crypto-assets were acquired. Therefore, the holding period prior to the effective date of the amendment is fully included in the three-year threshold. 
2. Application of the CZK 100,000 Value Limit: Only income generated from the effective date of the amendment, i.e., from 15 February 2025 inclusive, counts towards the limit. Income generated between 1 January and 14 February 2025 is excluded from the limit and is subject to standard taxation under Section 10 of the Income Tax Act. The overall CZK 40 million limit is not reduced in any way for the year 2025.

Conclusion and Recommendations

Although the confirmed stance brings welcome legal certainty to tax subjects, the practical application of the amendment places extreme demands on the verifiability of tax records. A precise transaction history (a so-called audit trail) for each asset is essential for the correct evaluation of the time-based and value-based tests, as well as for proving acquisition prices if the limits are exceeded. 

If you execute larger transactions with crypto-assets, evaluate the impacts of the exemption limits, or are preparing your tax return under the new legislative regime, our specialized tax team is ready to provide you with comprehensive advisory and eliminate potential tax risks.