Slovenian authorities have drafted new legislation to govern how cryptocurrency holdings and transactions are taxed in the country. According to local media reports, the proposal, which aims to clarify the situation, was submitted for public consultations this week. Slovenia Begins Public consultation on Crypto Taxation Law.
Slovenia Consultations on Crypto Taxation Law
Slovenian media reported that the Finance Ministry in Ljubljana has opened public consultations on a draught law governing cryptocurrency taxation. The legislation is based on proposals announced in August by the Financial Administration of the Republic of Slovenia (FURS).
The changes are expected to simplify the taxation of crypto assets. Under current rules, the taxable income from virtual currency operations is determined by the facts of each case, and the tax office must scrutinise numerous transactions made by taxpayers between purchases, sales, and conversions.
The state will impose a 10% flat tax on individuals who exchange cryptocurrency for fiat money under the upcoming regulations. Slovenia Consultations on Crypto taxation legislation. Purchases made with digital coins will be charged at the same rate. According to Slovenian media, the yearly tax liability threshold has been set at €15,000 (approximately $17,500).
If approved; the new tax regime would apply only to private individuals and not to businesses that hold cryptocurrency as an asset. The Finance Ministry estimates that the tax could raise between €100,000 ($116,000) and €500,000 ($580,000) per year in the first few years.
Other changes to tax regulations in the EU member state are on the way; with amendments to the income tax law set to take effect on January 1, 2022. Before they are approved or rejected by the legislature; lawmakers have decided that they will be discussed further by the Finance Committee.
According to media reports; one of the key proposals is to reduce capital gains tax and increase the general income tax allowance. The government’s intentions were criticized by the center-left opposition parties; who boycotted the vote; despite the fact that 43 members of Slovenia’s parliament voted in favor of the plan and three voted against it.
Slovenia, a small, bitcoin-friendly country in Southeast Europe, has emerged as the Old Continent’s leader in crypto adoption. Cafés, restaurants; hotels; hair salons; and sports facilities are among the over 1,000 locations across the country that; accept various cryptocurrencies for their services and offerings, according to a report from last year.
Source: Bitcoin.com