Slovenian authorities have drafted new legislation to govern how cryptocurrency holdings and transactions will be taxed in the country. According to local media sources, the plan, which aims to clarify the situation, was filed for public discussions this week.

Slovenia to Amend Tax Rules for Cryptocurrencies

Slovenian media reported that the Finance Ministry in Ljubljana has begun public discussions on a draft law governing cryptocurrency taxation. The bill is based on the Financial Administration of the Republic of Slovenia’s (FURS) suggestions, which were announced in August of this year.

The modifications are designed to make the taxation of crypto assets more straightforward. Under existing standards, taxable income from virtual currency transactions is determined by the facts of each case, and the tax office is required to examine a large number of transactions performed by taxpayers, including purchases, sales, and conversions.

Individuals who exchange cryptocurrencies for fiat money will be subject to a 10% flat tax under the new legislation. Purchases bought using digital currency will be charged at the same rate. According to the Slovenian press, the annual tax liability threshold has been set at €15,000 (about $17,500).

If approved, the new tax structure will only apply to private persons, not businesses that own cryptocurrency as an asset. According to the Finance Ministry, the tax might raise between €100,000 ($116,000) and €500,000 ($580,000) each year in the first few years after it is implemented.

Other tax reforms in the EU member state will come in the shape of adjustments to the income tax law, which are set to take effect on January 1, 2022. Before they are accepted or rejected by the legislature, lawmakers have opted to discuss them further with the Finance Committee.

According to media reports, one of the primary recommendations is to lower capital gains tax and enhance the general income tax limit. The government’s intentions were challenged by center-left opposition parties, who boycotted the vote, despite the fact that 43 members of the Slovenian parliament voted in favor of the plan and three against it.

Slovenia, a small, bitcoin-friendly country in Southeast Europe, has risen to the top of the Old Continent’s crypto acceptance rankings. Cafés, restaurants, hotels, hair salons, and sports facilities are among the approximately 1,000 locations around the country that accept various cryptocurrencies for their services and offers, according to a survey from last year.