May 13, 2022

The government of Slovenia passed a bill imposing a 5% tax on natural persons who convert cryptocurrencies into fiat currency or buy goods or services, but only if the amount reaches EUR 10,000 per year.

The government proposed the law passed quickly in the National Assembly. If passed, the tax would be applied to amounts redeemed since it took effect.

The Finance Ministry forecasts that the new taxation will bring in at least EUR 1 million per year to the budget in the first several years.

The new tax would be imposed on natural persons who pay taxes in Slovenia when they trade cryptocurrency for fiat currency and deposit the proceeds in a transaction account, or when they use cryptocurrency to buy goods, services, or other assets.

The tax would not apply to legal entities with cryptocurrencies as assets or to people with cryptocurrency as business assets.

Regardless of the number of cryptocurrency transactions made, a natural person who buys and sells cryptocurrency in their own name and on their own account is not regarded to be conducting business.

Unless there is a documented loss, the tax responsibility arises when the virtual money is redeemed. At the same time, each natural person might get a tax-free redemption of EUR 10,000 in virtual currencies per year.

The tax base would be calculated by subtracting the EUR 10,000 exemption from the total value of every cryptocurrencies sold in a calendar year. A 5% base tax would be paid on the amount.

Individuals in question would be able to file a tax return once a year or whenever virtual currency was liquidated. In any case, they’d have to pay the tax within 30 days after filing the return.

Source: Total Slovenia News
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