Authorities in Slovenia have prepared new legislation designed to determine how cryptocurrency holdings and transactions are taxed in the country. And local media reports revealed that the proposal, which aims to clarify the matter, was put to public consultations this week.
Slovenia to amend tax rules for cryptocurrency
Slovenian media reports that the Ministry of Finance in Ljubljana has opened a public consultation on a bill regulating taxes on cryptocurrency. The legislation is based on proposals made by the Financial Administration of the Republic of Slovenia (FURS), which were announced in August of this year.
The amendments are expected to simplify the taxation scheme related to crypto assets. Under current rules, taxable income from virtual currency operations depends on the circumstances in each case, and the tax office is required to verify the numerous transactions made by taxpayers between purchases, sales and transfers.
Under the upcoming regulations, the country will adopt a flat tax of 10% for individuals who exchange cryptocurrency for fiat money. The same price will be applied to purchases made with cryptocurrencies. According to the Slovenian press, the annual minimum tax obligation is set at 15,000 euros (about 17,500 dollars).
If approved, the new tax regime will only affect individuals and not those who hold cryptocurrency as an asset for their businesses. The Ministry of Finance has estimated that the tax could accumulate between €100,000 (US$116,000) and €500,000 (US$580,000) per year in the first few years after it was applied.
Other changes related to tax regulations in the EU member state come in the form of amendments to the income tax law due to come into force on January 1, 2022. Lawmakers have decided that these matters can be discussed further by the Finance Committee before they are approved or rejected by the legislature.
Media reports revealed that one of the main proposals is to reduce the capital tax and increase the general income tax allowance. The government’s intentions were criticized by the center-left opposition parties who boycotted the vote, as 43 members of the Slovenian parliament supported the plan and three voted against it.
Slovenia, a small bitcoin-friendly country in Southeast Europe, has established itself as a leader in cryptocurrency adoption in the Old Continent. According to a report from last year, cafes, restaurants, hotels, hair salons, and sports facilities are among more than 1,000 locations across the country that accept various cryptocurrencies for their services and offerings.
Do you think the new tax legislation in Slovenia will benefit cryptocurrency users? Let us know in the comments section below.
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