The Slovenian Ministry of Finance has proposed a 25% tax on cryptocurrency transactions.

CN
2 days ago

Source: Cointelegraph Original: "{title}"

According to the currently publicly solicited new bill draft, the Slovenian Ministry of Finance is considering imposing a 25% tax on cryptocurrency trading profits for residents of the country.

The Slovenian Ministry of Finance stated in a statement on April 17 that the bill proposes taxing when traders convert cryptocurrencies into fiat currency or use them to pay for goods and services, but exchanges and transfers of cryptocurrencies between the same user's wallets will be tax-exempt.

According to the proposed legislation, the cryptocurrency tax will be consistent with existing tax laws. Slovenian taxpayers will need to keep all transaction records for annual tax returns. Taxable income will be calculated by subtracting the purchase price from the selling price to determine profits.

Finance Minister Klemen Boštjančič stated in a statement to the Slovenia Times that it is unreasonable for personal cryptocurrency trading in the country to be tax-exempt.

He said in the statement, "The purpose of taxing crypto assets is not to increase tax revenue, but we believe it is unreasonable for one of the most speculative financial instruments to be completely tax-exempt."

Slovenian National Assembly member and member of the New Slovenia opposition party, Jernej Vrtovec, criticized the proposal in a statement on the X platform on April 16, arguing that it could hinder the development of the country's cryptocurrency industry.

"Slovenia had the opportunity to become a crypto-friendly country, but these government proposals will cause us to miss the opportunity again," he stated in a post translated from Slovenian.

"Excessive taxation will again lead to the outflow of young people and capital. Taxes should serve as an encouragement, not a suppression."

The proposal will open for public consultation until May 5. If Slovenian lawmakers pass the bill, it will take effect on January 1, 2026.

According to information from the cryptocurrency tax platform Token Tax, Slovenia imposed a 10% tax on cryptocurrency withdrawals and payments in 2023, but capital gains from occasional cryptocurrency trading are currently not taxed.

Currently, if cryptocurrency activities are considered a hobby, they can also be tax-exempt. However, commercial activities such as mining or staking are subject to income tax.

A bill proposed in April 2022 planned to impose a 5% tax on profits exceeding €10,000 ($11,372), but the bill ultimately failed to pass.

Slovenia issued the EU's first digital sovereign bond on July 25 last year. The bond had a face value of €30 million ($32.5 million), a coupon rate of 3.65%, and matured on November 25 last year.

According to forecasts from the online data platform Statista, the number of cryptocurrency users in Slovenia is expected to reach approximately 98,000 by 2025, with a penetration rate of 4.6% among its 2.12 million population. The expected revenue from the country's cryptocurrency market will reach $2.8 million.

Related: Binance CEO: Assisting multiple countries in establishing Bitcoin (BTC) reserves and formulating cryptocurrency policies.

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