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HOME > Crypto and NFT NEWS > BITCOIN NEWS > Slovenia Launches Public Consultations on Crypto Taxation Law
BITCOIN NEWSCrypto and NFT NEWS

Slovenia Launches Public Consultations on Crypto Taxation Law

NFT Studio 24
NFT Studio 24 October 28, 2021 107 Views 3 Min Read
Updated 2022/02/08 at 5:00 PM
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Crypto Taxation Law
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Authorities in Slovenia have prepared new legislation tailored to determine how crypto holdings and transactions are taxed in the country. The proposal, aimed at clarifying the matter, has been submitted for public consultations this week, local media reports revealed.

Slovenia to Amend Tax Rules for Cryptocurrencies

The Finance Ministry in Ljubljana has opened public consultations on a draft law regulating cryptocurrency taxation, Slovenian media reported. 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 tax scheme pertaining to crypto assets. Under current rules, the taxable income from virtual currency operations depends on the circumstances in each case, and the tax office has to check numerous transactions made by taxpayers between purchases, sales, and conversions.

Under the upcoming regulations, the state will adopt a 10% flat tax for individuals exchanging cryptocurrency for fiat money. The same rate will be applicable to purchases made with digital coins. According to the Slovenian press, the yearly threshold for tax liability has been set at €15,000 (approx. $17,500).

If approved, the new tax regime would affect only private individuals and not those who hold cryptocurrency as an asset of their businesses. The Finance Ministry has estimated that the tax could accumulate between €100,000 ($116,000) and €500,000 ($580,000) annually in the first few years after its introduction.

Other changes concerning tax regulations in the EU member state are coming in the form of amendments to the income tax law due to enter into force on Jan. 1, 2022. Lawmakers have decided that these can be discussed further by the Finance Committee before they are approved or rejected by the legislature.

One of the key proposals is to reduce tax on capital and increase the general income tax allowance, media reports unveiled. The government’s intentions were criticized by the center-left opposition parties which boycotted the vote as 43 members of the Slovenian parliament supported the plan and three voted against it.

Slovenia, a small, bitcoin-friendly nation in Southeast Europe, has established itself as a leader in crypto adoption on the Old Continent. According to a report from last year, cafés, restaurants, hotels, hair salons, and sports facilities are among over 1,000 locations across the country that accept various cryptocurrencies for their services and offerings.

Read more:https://news.bitcoin.com/

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NFT Studio 24 October 28, 2021
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