The finance minister of Slovenia is said to have been seeking some sound advice from its people regarding a draft bill that has something to do with implementing taxes on cryptocurrency investments.
The public consultation was rolled out by the Financial Administration of the Republic of Slovenia.It aims to gauge what investors have in mind following the above-mentioned 10 percent tax proposal to be applied to activities related to cryptocurrency.
Further, provided that such a proposal was put into law under the country’s Income Tax Act, this draft bill will add the said tax rate on each cryptocurrency payments and fiat-to-crypto conversions. It was pointed out, though, about the threshold for tax liability as it was agreed to be at 15,000 euros ($17,387) for the calendar year. With that in mind, investors who are still within the said price threshold will not be required to pay up those crypto taxes.
Cryptocurrency tax clarifications
Additionally, Slovenian authorities had already made it clear about their intentions as to why they’ve come up with such a proposal. They stated that it’s not the profit that is being taxed by the bill, but rather the amount of Slovenian tax residents have been getting on their bank statements on either converting the cryptocurrency into real-world money or purchasing stuff.
Before this, it was already reported that the crypto tax’s draft bill would only cover purchasing of items and other services and the conversion from digital currency to fiat. Further, it was learned that Slovenia’s finance ministry is expecting that the draft bill would be fully adopted by November 10, 2021, as it would eventually take full effect on January 1, 2022.
Checking it real-time
Also, it is requisite that Slovenian residents should calculate for the tax by putting into consideration the value of cryptocurrencies in real-time in the event of their redemption and acquisition. With that, the investors would need to pay a 25% tax on “unrealized gains” by computing the price difference by the time these cryptos are being either sold or bought.
Further, folks who would go against it will be slapped with a fine amounting to 250 euros (290 USD) to 5,000 euros ($5,795). In short, just don’t.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.