Reports said that Slovenia’s Ministry of Finance is reportedly seeking public consultation on a draft bill related to taxing cryptocurrency investments.
It has been reported that the ministry’s intent to gauge investor sentiment comes almost a month after the Financial Administration of the Republic of Slovenia proposed a 10% tax on cryptocurrency activities. If signed into law under Slovenia’s Income Tax Act, the proposed bill will impose a 10% tax rate on every fiat-crypto conversion and payments made with cryptocurrencies.
However, the threshold for tax liability will be set to 15,000 euros ($17,387) for the calendar year. Investors within the limit will be exempted from crypto taxes. The authorities had previously clarified their motive for implementing the crypto tax.
The authorities stated:
“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.”
The report said that previously, the Slovenian draft bill on crypto tax would be limited to the purchase of goods and services and the conversion of crypto assets into fiat currencies only. While the finance ministry’s proposal is expected to have been adopted by November 10, the law would take effect starting January 1, 2022.
Likewise, the bill would also require Slovenian citizens to calculate the tax by considering the real-time value of crypto at the time of redemption and acquisition. Investors will also need to pay a 25% tax on unrealized gains by calculating the price difference during the purchase and sale of cryptocurrencies. Individuals failing to comply with tax obligations will be fined between 250 euros ($290) to 5,000 euros ($5,795) on a case-by-case basis.
A Chainalysis research highlighted explosive growth in Europe’s crypto addition drive. According to the report, the central, northern, and western regions of Europe (CNWE) received over $1 trillion worth of digital assets between July 2020 and June 2021.
Thus, CNWE accounted for 25% of global crypto activity.