Slovenia is preparing to levy a 10% tax on cryptocurrency spending and sales
In the near future, the republic of Slovenia is preparing to impose a 10% tax on cryptocurrency market activities. This new initiative by the Financial Administration of the Republic of Slovenia would streamline the legislative method. It will exclusively focus on the purchase of services and goods, or the conversion of cryptocurrencies into fiat money. Under this paradigm, individuals will be subject to a 10% cut from their income as tax.
Currently, the method of administering crypto activities is very tedious and time-consuming. The authority has to analyze every individual’s crypto assets and activity, case-by-case, by going through their entire transaction history.
The Intention of Slovenia
In Europe, Slovenia has been vocal about the adoption of cryptocurrencies and Blockchain technology. It has also actively pushed for the regulation of crypto-assets across Europe. Based on a report from the previous year, around 1,000 establishments in Slovenia, such as restaurants, hotels, cafes, sports facilities, salons, and spas legitimately accept different cryptocurrencies as payment options.
The financial research organization, Crypto Head, placed Slovenia in the 7th position on its aggregated crypto index. Crypto Head took into account the country’s ability to completely adopt digital assets. The organization studied various metrics including Crypto ATM legislation and saturation, and Google Searches.
The Financial Administration of the Republic of Slovenia also issued a statement regarding the matter. They clarified that profits will not be taxed. Instead, they will tax the amount which Slovenians receive in their bank account when they convert a digital currency into cash.