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Slovenian finance ministry seeks public opinion on crypto tax laws

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According to local sources, Slovenia’s Ministry of Finance is seeking public input on a draught bill pertaining to taxing cryptocurrency investments.

The ministry’s intention to measure investor mood comes almost a month after the Republic of Slovenia’s Financial Administration recommended a 10% tax on cryptocurrency activity.

The proposed measure would levy a 10% tax rate on all fiat-to-crypto conversions and payments made using cryptocurrency. If it turns into law under Slovenia’s Income Tax Act. For the calendar year, however, the tax obligation level will be set at 15,000 euros ($17,387). Crypto taxes will be waived for investors who stay under the cap. The authorities had already explained why they were imposing a crypto tax.

“We want to stress that the amount a Slovenian tax resident receives on their bank account when converting virtual money to cash or purchasing anything will be taxable, not the profit.”

The bill only applies to the acquisition of goods, services, and the conversion of crypto assets into fiat currency

The Slovenian draught bill on crypto tax would only apply to the acquisition of goods and services. As well as the conversion of crypto assets into fiat currency. The finance ministry’s proposal is likely to acquire approval by November 10. With the law taking effect on January 1, 2022.

The law also requires Slovenian people to compute the tax. Based on the current value of the cryptocurrency at the time of redemption and acquisition. By assessing the price difference between the acquisition and sale of cryptocurrencies, investors will also have to pay a 25% tax on unrealized profits.

Furthermore, individuals who fail to comply with tax responsibilities may face fines. Ranging from 250 euros ($290) to 5,000 euros ($5,795) depending on the circumstances.

On the Other hand, according to a Chainalysis study, Europe’s crypto use is growing at a breakneck pace. According to the analysis, between July 2020 and June 2021, the Central, Northern, and Western European regions (CNWE) received over $1 trillion in digital assets. As a consequence, CNWE accounted for 25% of all cryptocurrency activity worldwide.

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