The Slovenian finance ministry is asking the public for feedback on proposed crypto tax laws. Some of these proposals include a 10% capital gains tax, VAT and other levies applied to cryptocurrency trading. It’s unclear what will come from the consultation phase but it could be an important step in determining how Slovenia handles taxation of digital assets going forward.
The Slovenian finance ministry is interested in public opinion on the country’s crypto tax plans. The Ministry of Finance wants to hear what its citizens think about introducing taxes for trades made with cryptocurrencies, as well as whether bitcoin should be subject to value added tax (VAT).
Slovenia’s finance ministry is seeking public opinion on the country’s crypto tax laws. The country has been a hotbed for cryptocurrencies, but has yet to regulate them.
According to local sources, Slovenia’s Ministry of Finance is seeking public input on a draft law pertaining to taxing cryptocurrency investments.
The ministry’s intention to measure investor mood comes almost a month after the Republic of Slovenia’s Financial Administration recommended a 10% tax on cryptocurrency activity.
The proposed measure would levy a 10% tax rate on all fiat-to-crypto conversions and payments made using cryptocurrency if it is passed into law under Slovenia’s Income Tax Act. For the calendar year, however, the tax obligation level will be set at 15,000 euros ($17,387). Crypto taxes will be waived for investors who stay under the cap. The authorities have previously stated their motivation for imposing a cryptocurrency tax:
“We want to highlight that the amount a Slovenian tax resident gets on their bank account when converting virtual money to cash or purchasing anything will be taxed, not the profit.”
The Slovenian draft law on crypto tax, according to Cointelegraph, would only apply to the acquisition of goods and services and the transfer of crypto assets into fiat currency. While the finance ministry’s proposal is anticipated to be approved by November 10, the legislation will go into force on January 1, 2022.
The law also requires Slovenian people to compute the tax by taking into account the current value of cryptocurrency at the time of redemption and purchase. By assessing the price difference between the acquisition and sale of cryptocurrencies, investors will also have to pay a 25% tax on unrealized profits.
Individuals who fail to comply with tax responsibilities may face fines ranging from 250 euros ($290) to 5,000 euros ($5,795) depending on the circumstances.
Related: Chainalysis: Europe becomes the world’s biggest crypto economy with over $1 trillion in transactions
According to a Chainalysis study, Europe’s crypto addition drive is exploding. Between July 2020 and June 2021, the central, northern, and western regions of Europe (CNWE) received over $1 trillion in digital assets, according to the analysis. As a consequence, CNWE accounted for 25% of all crypto activity worldwide.
The “Portugal crypto tax” is a new law that was passed by Portugal. The Slovenian finance ministry is seeking public opinion on the law, and wants to know if it would be beneficial for Slovenia. Reference: portugal crypto tax.
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