A proposed cryptocurrency law in Slovenia, that will see 10% tax being imposed on cryptocurrency conversions and payments, will be subject to public discussion according to a number of local news outlets.
Previously regulators had introduced the bill with the aim to calculate the tax by considering the real-time value of crypto at the time of acquisition.
“We would like to emphasize that it is not profit which would be taxed but rather the amount a Slovenian tax resident receives on their bank account on turning the virtual currency into cash or when buying a thing.”
Now public opinion may be taken into consideration in the form of a public consultation according to local sources. The proposed tax law will be up for public discussion, according to news website N1 Slovenia.
If ratified, the new law would be subject to Slovenia’s Income Tax Act which would impose a tax rate of 10% to every fiat-crypto conversion.
However, as previously announced in August, the tax law provides a threshold for tax liability of $15,000 euros, which means that investors who make losses, or fall within the remit of the threshold, would be exempt from the tax.
The draft law is due to take effect in January 2022, and would represent a big stride in Slovenia’s move to regulate cryptocurrencies.
Cryptocurrencies have grown in popularity in Slovenia in recent years, with an estimated circulation of tens of thousands of euros that is rapidly increasing. As the wealthiest slavic nation, in terms of per capita GDP, Slovenia has positioned itself as a key player in terms of blockchain and cryptocurrency related activities.
In fact, according to Go Crypto, over 1,000 locations accept cryptocurrency payments in Slovenia. With a large percentage of Slovenians who are informed about crypto, and a growing crypto economy, it may not be unusual for regulators to open up a public consultation on crypto tax regulation.
If the draft law is passed, this would mean that regulatory authorities would no longer have to examine individual crypto transactions, but would require the participation of the crypto user to inform them of their activities.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
