Slovenia’s finance ministry has reportedly requested a public consultation on a bill to tax cryptocurrency investments, according to local reports.
The ministry’s intention to assess investor sentiment comes nearly 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 bill will impose a tax rate of 10% on every fiat-to-crypto conversion and payments made with cryptocurrencies. However, the threshold for tax liability will be set at 15,000 euros ($ 17,387) for the calendar year. Investors within the limit will be exempt from crypto taxes. Authorities previously clarified their motivation for implementing the crypto-tax:
“We would like to stress that it is not the profits that would be taxed, but rather the amount that a Slovenian tax resident receives in their bank account when they turn virtual currency into cash or when they buy something.”
Cointelegraph previously reported that Slovenia’s crypto tax bill would be limited to purchasing goods and services and converting crypto assets into fiat currencies only. While the finance ministry’s proposal is expected to have been adopted by November 10, the law would enter into force on January 1, 2022.
The bill would also require Slovenian citizens to calculate the tax taking into account the real-time value of the crypto at the time of redemption and acquisition. Investors will also have to pay a 25% tax on unrealized gains by calculating the price difference when buying and selling cryptocurrencies.
Individuals who fail to comply with tax obligations will be fined 250 euros ($ 290) to 5,000 euros ($ 5,795) on a case-by-case basis.
Related: Europe Becomes Biggest Crypto Economy With Over $ 1 Million In Transactions – Chainalysis
Chainalysis research has shown explosive growth of the crypto addition drive in Europe. According to the report, Central, Northern and Western Europe (CNWE) regions received more than $ 1 trillion in digital assets between July 2020 and June 2021. As a result, CNWE accounted for 25% of global crypto activity.