Cryptocurrency Isn’t The Future –  It’s Reality

Cryptocurrency Isn’t The Future –  It’s Reality

Slovenia Government Begins Public Consultations On New Cryptocurrency Tax Laws

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Slovenia, Another Country Adding Cryptocurrency Tax laws For Its Citizen

Cryptocurrency has been growing in popularity and integrating itself into all facets of business, government and of course our personal lives. We have seen countries like El Salvador embrace Bitcoin and cryptocurrency declaring Bitcoin legal currency and seeing it as an evolutionary step in currency, encouraging its citizens to buy goods and services with the new "money"

We have also seen countries making crypto illegal or banning it as the case with China. China is a bit hypocritical, banning crypto at the same time creating its own digital currency, the Digital Yuan. Some countries while not have clear polices on Cryptocurrencies have taken steps to collect taxes on profits made bitcoin and other cryptocurrency. 

Slovenia is added to those countries is reported in this story. The original source of this story is listed below. We have also seen cryptocurrency related crimes increase, leading to countries beginning to regulate all areas of cryptocurrency.

Ljubljana, Slovenia

Ljubljana, has a population of 289,000 and is the largest city of Slovenia and its capital. This hasn’t stopped the countries  prominent bitcoin exchange, Bitstamp . The exchange was founded in Slovenia before moving operations to Luxembourg then London. Ljubljana has more than 200   bitcoin ATMs in and around the city .

Authorities in Slovenia have prepared new legislation 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 this week, local media reports revealed.

Slovenia to Amend Tax Rules for Cryptocurrencies

The Finance Ministry in Ljubljana has opened public consultations on a draft law regulating cryptocurrency taxation, Slovenian media reported. The legislation is based on proposals made by the Financial Administration of the Republic of Slovenia (FURS), which were announced in August of this year.

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, and 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 will be applicable to purchases made with digital coins. According to the Slovenian press, the yearly threshold for tax liability has been set at €15,000 (approx. $17,500).

If approved, the new tax regime would affect only private individuals and not those who hold cryptocurrency as an asset of their businesses. The Finance Ministry has estimated that the tax could accumulate between €100,000 ($116,000) and €500,000 ($580,000) annually in the first few years after its introduction.

Tax Regulations In EU Member States Are Coming

Other changes concerning tax regulations in the EU member state are coming in the form of amendments to the income tax law due to enter into force on Jan. 1, 2022. Lawmakers have decided that these can be discussed further by the Finance Committee before they are approved or rejected by the legislature.

One of the key proposals is to reduce tax on capital and increase the general income tax allowance, media reports unveiled. The government’s intentions were criticized by the center-left opposition parties which boycotted the vote as 43 members of the Slovenian parliament supported the plan and three voted against it.

Slovenia, a small, bitcoin-friendly nation in Southeast Europe, has established itself as a leader in crypto adoption on the Old Continent. According to a report from last year, cafés, restaurants, hotels, hair salons, and sports facilities are among over 1,000 locations across the country that accept various cryptocurrencies for their services and offerings.

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