According to local reports, Slovenia’s Ministry of Finance is requesting a public consultation on a bill related to the imposition of taxes on investments in cryptocurrencies.
The intention of the ministry to measure the mood of investors occurs almost a month after the Financial Administration of the Republic of Slovenia proposed a 10% tax on cryptocurrency activities.
If enacted under the Slovenian Income Tax Law, the proposed bill will impose a 10% tax rate on every fiat-crypto conversion and payments made with cryptocurrencies. However, the limit of the tax liability will be set at 15,000 euros (USD 17,387) for the calendar year. Investors within the cap will be exempt from tax on cryptocurrencies. Authorities had previously clarified their motive for implementing the tax on cryptocurrencies.
“We would like to emphasize that it is not the earnings that will be taxed, but the amount that a Slovenian tax resident receives in their bank account when converting the virtual currency into cash or when buying something.”
Cointelegraph previously reported that the Slovenian cryptocurrency tax bill would mimic 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 from January 1, 2022.
The bill would also require Slovenian citizens to calculate the tax taking into account the real-time value of cryptocurrencies at the time of redemption and acquisition.. Investors will also have to pay a 25% tax on unrealized gains calculating the price difference during the purchase and sale of cryptocurrencies.
People who do not comply with their tax obligations will be fined between 250 euros (USD 290) and 5,000 euros (USD 5,795) as the case may be.
An investigation by Chainalysis highlighted explosive growth in the momentum of the addition of cryptocurrencies in Europe. According to the report, Central, Northern and Western Europe (CNWE) regions received more than $ 1 billion in digital assets between July 2020 and June 2021. CAs a result, CNWE accounted for 25% of global crypto activity.