Financial Administration In Slovenia Proposes Special 10% Tax On Crypto Income

Slovenia may be small, but it is one of the fastest growing nations in Europe, especially in a business and economic context. After its successful economic successor from Yugoslavia, it was the first to join the European Union in 2004 and is the richest Slavic country in terms of per capita GDP. The acceptance of cryptocurrencies in Slovenia has increased rapidly over the years. The citizens’ awareness of cryptocurrencies is relatively high.

The proposed crypto tax law

According to reports from local media, the Financial Administration of the Republic of Slovenia (FURS) has made a proposal to change the crypto taxation rules in the country. This proposal aims to introduce a taxable income calculation of 10% for activities in cryptocurrencies in the near future. The country’s tax authority claims that this change would make the taxation of crypto-related income much easier.

Total crypto market rises to $ 2.28 trillion | Source: Crypto Total Market Cap from TradingView.com

Currently, the agency has to analyze a person’s crypto-activity on a case-by-case basis. It examines numerous transactions a taxpayer made between buying and selling the digital currency, as well as the various cryptos he bought and sold or converted. When the changes are introduced, the Treasury stated that it no longer needed to go through this stagnant and lengthy crypto management process.

Related reading | Make Money In Bitcoin Markets? Don’t forget about crypto taxes

“We would like to emphasize that it is not the profit that is taxed, but the amount that a Slovenian taxpayer receives in his bank account when he converts the virtual currency into cash or buys something.” FURS said according to the media.

Crypto adoption in Slovenia

Recently, Slovenia has been projected as a hotspot for blockchain and cryptocurrency activities. With an estimated population of 2 million, the country has more physical locations that accept cryptocurrency payments than the entire United States.

Related reading | Slovenia’s Bitcoin City will become the world’s first fully crypto-friendly lifestyle center

According to GoCrypto, more than 1,000 locations will now allow payments in cryptocurrency in 2020, including cafes, restaurants, dentists, hair salons and hotels. At the beginning of 2019, it was also the only country in the world where you could survive solely on cryptocurrencies.

Featured image from The Slovenia Times, chart from TradingView.com