The Czech Financial Administration released formal guidance on April 30 that explains how recent statutory changes - enacted by Law No. 32/2025 - affect income tax treatment of transfers in crypto-assets by individuals.
The guidance references the definition of crypto-assets in the EU’s Markets in Crypto-Assets Regulation, 2023/1114/EU, and sets out two exemption routes: a value-based exemption and a time-based exemption.
Under the value-based approach, eligible income is capped at 100,000 Czech korunas for 2025. That limit excludes electronic money tokens, which the guidance explicitly does not treat as eligible under this value-based cap. Income realized in the period from February 15, 2025, through December 31, 2025, is to be counted toward the 100,000 koruna limit for the 2025 tax year.
The time-based exemption applies where crypto-assets have been held for a continuous three-year period. For that exemption the guidance sets a ceiling of 40 million korunas - a combined cap applying to income from crypto-assets together with specified share income. The guidance clarifies that the three-year holding period may include time prior to the enactment of the amendments.
The administration’s guidance states that the amendments themselves apply to crypto-assets from February 15, 2025, and that this applicability extends to assets acquired before that date. The document therefore links the effective date of the statutory changes to both the valuational treatment for 2025 income and the start point for the amended rules.
The guidance is procedural and interpretive, setting out how taxable events and the applicable exemptions should be measured within the frameworks and limits established by Law No. 32/2025 and the referenced EU regulation.
Key takeaways
- Guidance issued April 30 implements Law No. 32/2025 for individual crypto-asset income exemptions and references Markets in Crypto-Assets Regulation 2023/1114/EU.
- Value-based exemption: 100,000 koruna cap for 2025, excluding electronic money tokens; income from Feb. 15-Dec. 31, 2025 counts toward the 2025 limit.
- Time-based exemption: three-year holding period, including pre-amendment time, with a combined cap of 40 million koruna for crypto-asset and specified share income.
Impacted sectors - individual crypto-asset holders, tax administration and compliance functions, and financial services involved in digital asset custody and reporting.
Risks and uncertainties
- Classification scope - electronic money tokens are explicitly excluded from the value-based exemption, creating potential classification and compliance challenges for holders of different token types.
- Record-keeping and timing - taxpayers must establish dates of acquisition and realization, as income realized between Feb. 15 and Dec. 31, 2025, will count toward the 100,000 koruna limit for 2025; accurate documentation is therefore required.
- Aggregation and caps - the 40 million koruna ceiling for the time-based exemption combines crypto-asset income with specified share income, which may complicate calculations for taxpayers with multiple income sources.