Authorities in Slovenia have formulated a new law 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 by the Finance Ministry in Ljubljana.
The legislation is based on proposals made by the Financial Administration of the Republic of Slovenia (FURS), which were announced already in August of this year.
Sources familiar with the situation told Coin Rivet the Ministry still doesn’t know the exact number of crypto transactions on the market.
They claim most of the transactions are made through foreign crypto platforms unconnected with local government and, therefore, still cannot be taxed as such.
However, the Ministry of Finance assumes the possible incomes to the state budget could amount to €500.000 per year.
Crypto tax regime to affect only private traders
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. 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 would be applicable to purchases made with digital coins.
If approved, the new tax regime would affect only private individuals and not those who hold cryptocurrency as an asset to their business.
The government’s intentions were criticised by the centre-left opposition parties which boycotted the vote as 43 members of the Slovenian parliament supported the plan. There were three votes against.
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