As per local reports, the ministry of finance of Slovenia is requesting public inputs on a bill that is expected to tax cryptocurrency investments. The move is primarily to assess investor sentiment and invite feedback. The financial administration of the republic earlier proposed a 10% tax on cryptocurrency activities.
If the bill is signed in to legislation and enacted in to a law, the bill will impose a 10% tax rate. The tax is not applicable to profits that investors make, but includes every fiat-to-crypto transaction and any payments made with cryptocurrencies. There is a threshold limit of 15,000 Euros and investors who remain within this limit will not invite any tax. The ministry also clarified that it is not the profits that will invite taxes. It is amount that a Slovenian resident receives when he converts cryptocurrency in to cash will be taxed.
This new legislation is sure to make an impact from the beginning of the New Year, from January 2022 but the bill may pass in the month of November 2021. The residents will have to calculate tax by anticipating worth of crypto in real-time at the point of acquisition and redemption.
On an individual basis, investors may also have to pay fines ranging from 250 euros to over 5,000 euros, in case there is a failure to comply with the tax obligations.
Digital assets are exploding in CNWE region
Digital assets are exploding in Central, Western and Northern Europe. The region has received more than 1 trillion dollars in digital assets between the months of July 2020 and June 2021. Additionally, it also accounts for over 25% of the global cryptocurrency activity.