The Slovenian Ministry of Finance posted on the official portal a draft law supplementing the Law on Personal Income Tax in the field of operations with cryptocurrencies.
The draft law provides for 10% taxation for residents of the Republic of Slovenia in the case of exchanging cryptocurrency for fiat currency and in the case of purchases for cryptocurrencies. The tax is levied on an amount of 15,000 euros per calendar year. Buying cryptocurrencies will not count as an exchange.
The law will enter into force on January 1, 2022, and comments on the proposal
accepted ministry until November 10. The law will not apply to individuals who have cryptocurrencies in assets by the type of activity, as well as to legal entities.
The bill provides for an alternative option for paying income tax, which will represent the difference between the cost of a cryptocurrency when buying and selling. In this case, the tax rate is 25% and the tax exemption for amounts less than 15,000 euros per year does not apply. This option can also be used by a taxpayer in case he suffered a loss while exchanging cryptocurrency. He must prove this loss to the tax authority.
An individual who does not provide information on the exchange or purchase of fiat currency for cryptocurrency in the tax return faces a fine of 250 to 400 euros. Anyone who provides false or incomplete information will be punished with a fine of 400 to 5,000 euros.
The Ministry of Finance admits that it does not have information on the trading volumes of cryptocurrencies. Since most cryptocurrency transactions go through foreign exchanges, which, as a rule, do not report to the tax authorities. However, according to them, the state budget revenues from the draft law on taxation of cryptocurrencies in the first few years will range from 100,000 to 500,000 euros per year.
The initiator of the introduction of the 10% tax was made two months ago by the Financial Markets Authority of Slovenia (FURS). Slovenia is one of the most crypto-friendly jurisdictions in Europe.
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