Slovenia launches public consultations on cryptocurrency taxation law – Taxation of Bitcoin News
The authorities in Slovenia have prepared new legislation that will determine how cryptocurrencies and transactions are taxed in the country. A proposal aimed at clarifying the matter was submitted for public consultation this week, local media reported.
Slovenia will change the tax rules for cryptocurrencies
The Ministry of Finance in Ljubljana has started a public consultation on a draft law on the taxation of cryptocurrencies, Slovenian media report. The legislation is based on the proposals of the Financial Administration of the Republic of Slovenia (FUR), which were published in August this year.
The changes are expected to simplify the tax scheme relating to crypto assets. Under current rules, taxable income from virtual currency transactions depends on the circumstances of each individual case, and the tax office must verify a number of taxpayer transactions between purchases, sales and conversions.
Under the upcoming regulations, the state will adopt a 10% flat tax for individuals exchanging cryptocurrencies for fiat money. The same rate will apply to purchases with digital coins. In Slovenian press, the annual threshold for the tax liability is set at € 15,000 (approximately $ 17,500).
If adopted, the new tax regime would only affect individuals and not those who have cryptocurrencies as a means of their businesses. The Ministry of Finance estimated that the tax could accumulate between € 100,000 ($ 116,000) and € 500,000 ($ 580,000) per year in the first few years after its introduction.
Other changes in tax regulations in an EU Member State come in the form of amendments to the Personal Income Tax Act, which are due to enter into force on 1 January 2022. Legislators have decided that this may be discussed by the Finance Committee before being approved or rejected by the legislature.
One of the key proposals is to reduce the capital tax and increase the general income tax relief, the media report. The government’s intentions were criticized by center-left opposition parties, which boycotted the vote, as the plan was supported by 43 members of the Slovenian parliament, while three voted against.
Slovenia, a small, bitcoin-friendly country in Southeast Europe, has established itself as a leader in accepting cryptocurrencies on the Old Continent. According to last year’s report, cafes, restaurants, hotels, hairdressers 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 that the new Slovenian tax legislation will benefit users of cryptocurrencies? Let us know in the comments section below.
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