According to a local media report, Slovenian tax authorities have proposed an amendment to the country’s crypto taxation rules. The amendment has proposed to levy a 10% tax on transactions that include the spending, selling, or conversion of cryptocurrency into fiat currency. The measure is supposed to make cryptocurrency-related tax reporting more effortless, the Financial Administration of the Republic of Slovenia (FURS) reported. FURS provided additional information on the proposal to a regional Slovenian Press Agency viz. STA as quoted below:
“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.”
FURS claims that it will simplify the taxation of cryptocurrency-related revenue in EU member states. According to Slovenian current legislation procedure, the authority has to analyze an individual’s digital asset activity on a case-by-case basis by examining their buying and selling transactions. This sophisticated procedure involves a high volume of transactions, even tens of thousands, which has created the need for simple taxation.
If these amendments are adopted and imposed as a part of taxation activity, then there won’t be any need to verify a taxpayer’s numerous transactions involving the purchase and sale of digital currency, as well as the various cryptos they have purchased, sold, or converted. This new rule would also make it easy for taxpayers to figure out their crypto-related taxes only by registering the total value they received while selling crypto rather than disclosing the entire history of their transactions to justify whether they earned a profit or lost money.
Crypto Adoption Spreading like a WildFire in Slovenia
With an estimated population of 2.1 million, Slovenia is recognized as a European pioneer in crypto adoption. Slovenia scored seventh in an aggregated cryptocurrency index released by the financial research firm Crypto Head, calculated using various metrics, including crypto ATM saturation, legislation, and Google searches.
According to news cover by Kevin Helms from last year, over 1,000 places around the country accept various cryptocurrencies for payment, including hotels, cafés, hair salons, and sports facilities; still, according to an extensive response from the interested public on the amendment, FURS now plans to change its proposal.
FURS has now proposed that taxpayers, who are Slovenian tax residents, have the option of paying a 10% tax on the number of cryptocurrencies cashed in or a 25% tax on the profit they make. In addition, the proposal only applies to individuals who are Slovenian tax residents, not legal entities, according to the tax authority. Amounts of up to EUR 15,000 in a calendar year will not be required to be reported and would not be taxed under the proposed amendment, the Financial Administration of the Republic of Slovenia said.
Given the rapid growth of virtual currencies in recent years, the tax administration of Slovenia stated that the measure aimed to at least partially respond to the trend and simplify things. Also, Slovenia wanted to be the first European country to take such a step, according to the report.
Do you think Slovenia will implement the new taxation system and become the first country in Europe to do so? Share your valuable opinions about the proposed amendments in the comments below.