Slovenian authorities have prepared new legislation adapted to determine how cryptocurrency wallets and transactions are taxed in the country. The proposal, which aims to clarify the matter, was submitted to public consultation this week, revealed the local media.
Slovenia to change tax rules for cryptocurrencies
Ljubljana’s Ministry of Finance has opened public consultations on a bill regulating taxes on cryptocurrencies, Slovenian media reported. The legislation is based on proposals from the Financial Administration of the Republic of Slovenia (FURS), which were announced in August this year.
The changes are expected to simplify the tax regime for cryptographic assets. Under current rules, taxable income from virtual currency transactions depends on the circumstances of each case, and the tax administration must verify many transactions made by taxpayers between purchases, sales and conversions.
Under future regulations, the state will adopt a 10% flat rate tax for people who exchange cryptocurrencies for fiat currency. The same fee will apply to purchases made with digital currencies. According to the Slovenian press, the annual limit for tax obligations has been set at 15,000 euros (approximately US$17,500).
If approved, the new tax regime would affect only individuals and not those who have cryptocurrency as an asset in their business. The Ministry of Finance has estimated that the tax can accumulate between 100,000 euros ($116,000) and 500,000 euros ($580,000) per year in the first few years after its introduction.
Other changes to tax regulations in the EU member state come in the form of amendments to the income tax law that will take effect on January 1, 2022. Lawmakers have decided that this can be discussed in more detail by the finance committee beforehand. are approved or rejected by the legislator.
One of the main proposals is to reduce the capital tax and increase the reduction in the general income tax, revealed the outlet. The government’s intentions were criticized by centre-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 southeastern European country, has established itself as a leader in the adoption of cryptography on the Old Continent. Cafes, restaurants, hotels, hairdressers and sports facilities are among more than 1,000 locations across the country that accept multiple cryptocurrencies for their services and offerings, according to a report last year.