According to local reports, Slovenia’s Ministry of Finance is reportedly asking for a public consultation on a bill on taxation of cryptocurrency investments.

The ministry’s intention to assess investor sentiment came about a month after the Slovenian financial administration proposed a 10% tax on cryptocurrency activities.

If the law is signed under the Slovenian Income Tax Act, the proposed bill will set a tax rate of 10% on every digital currency transfer and payments made with cryptocurrency. However, the tax limit will be set at EUR 15,000 (USD 17,387) per calendar year. Investors will be exempt from paying cryptocurrency tax. The authorities have previously explained their motives for introducing a tax on cryptocurrency:

“We want to emphasize that the tax will not be taxed on profits, but on the amount that the Slovenian taxpayer deducts from his bank account when he converts virtual currency into cash or when he buys something.”
Cointelegraph previously reported that the Slovenian tax bill for cryptocurrencies would be limited to the purchase of goods and services and the conversion of cryptocurrencies into fiat currencies only. The Ministry of Finance’s proposal is expected to be adopted by 10 November, and the law will enter into force on 1 January 2022.

The bill will also require Slovenian citizens to calculate taxes based on the true value of the cryptocurrency at the time of redemption and acquisition. Investors will also have to pay 25% tax on unrealized profits by calculating the spread on the purchase and sale of cryptocurrency.

Individuals who do not comply with their tax obligations will be fined between € 250 ($ 290) and € 5,000 ($ 5,795) on a case-by-case basis.

RELATED: Europe Becomes Largest Crypto-Economy with Over $ 1 Trillion Transactions – Sequence Analysis

Chain analysis highlights the explosive growth of the campaign for the addition of cryptocurrency in Europe. Central, Northern and Western Europe (CNWE) received over $ 1 trillion in digital assets between July 2020 and June 2021, according to the report. As a result, CNWE captured 25% of the world’s cryptoactivity.

Source: CoinTelegraph