Slovenian authorities have enacted new laws to determine how taxes are levied on crypto holdings and transactions in the country. The proposal was submitted for public consultation this week with the aim of clarifying the matter, local media reports said.
Slovenia will amend tax rules for cryptocurrencies
According to Slovenian media, the Ministry of Finance of Lubliana has begun public consultation on a draft law regulating cryptocurrency taxation. The law is based on a proposal made by the Financial Administration of the Republic of Slovenia (FURS), which was announced in August this year.
The amendments are expected to simplify crypto asset tax schemes. Under current rules, taxable income from virtual currency operations depends on the situation in each case and the tax office is required to examine the numerous transactions made by taxpayers between purchase, sale and conversion.
Under the forthcoming regulations, the state will levy a 10% flat tax for individuals exchanging cryptocurrencies for fiat money. The same rate will apply to purchases made with digital coins. According to the Slovenian press, the annual threshold for tax liability is set at € 15,000 (approximately $ 17,500).
If approved, the new tax system will only affect individuals and not those who hold cryptocurrencies as their business assets. The Ministry of Finance estimates that between € 100,000 ($ 116,000) and € 500,000 ($ 580,000) may be deposited annually in the first few years after the introduction of the tax.
Other changes to tax regulations in EU member states are coming into effect as amendments to the Income Tax Act take effect on 1 January 2022. The legislators have decided that these can be further discussed by the Finance Committee. Approved or rejected by the legislature.
One of the key proposals is to reduce taxes on capital and increase general income tax allowances, media reports said. The government’s intentions were criticized by center-left opposition parties who boycotted the vote because 43 members of the Slovenian parliament supported the plan and three voted against it.
Slovenia, a small, bitcoin-friendly nation in southeastern Europe, has established itself as a leader in crypto adoption on the old continent. According to a report last year, cafes, restaurants, hotels, hair salons and sports facilities are among the more than 1,000 locations across the country that accept different cryptocurrencies for their services and offers.
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