Looking to get a better grip of the crypto market, the country is preparing for new taxation rules.
Put It to the Test
We have seen country after country take a closer look at the possibilities of enforcing taxes on cryptocurrency and Slovenia is the latest nation, wanting to put it to the test.
The Financial Administration of the Republic of Slovenia, also known as FURS, recently drafted a proposal in which they want to impose a 10% tax on cryptocurrency. It is meant to be used for the crypto amounts being used for goods and services as well as the amounts being converted into cash.
Wanting To Simplify Crypto Taxing
According to a report, in an attempt to clarify the proposal, FURS left the following explanation:
“We would like to emphasize that it is not profit which would be taxed but rather the amount a Slovenian tax resident receives on their bank account on turning the virtual currency into cash or when buying a thing.”
By doing so, the idea is to significantly simplify the way Slovenia deals with taxing any crypto-related income.
Tax on Any Profit Made
At the moment, whether or not the use of cryptocurrency is taxable or not depends heavily on the circumstances of each individual case. For example, if your crypto sale is part of a business activity, you are forced to pay capital gains tax on any profit made.
Due to our society becoming more and more digitized, FURS feels the taxation solutions must be simpler. Having to check thousands of transactions in some cases has taken its toll on the authorities, leading to its latest proposal.
No Walk in the Park
Even though the new rules would make things easier to control, it doesn’t mean it will be a walk in the park. Crypto investors would still have to prove any potential losses, resulting in the need for additional transaction verifications.
Also, opponents of the proposed new tax law are already making their voices heard, declaring the stupidity of the whole thing.
As a country, Slovenia has come a long way in terms of adapting to virtual currency. With more than 1,000 locations already open for business with crypto using customers, the country continues to progress.
Whether or not the 10% tax will be implemented remains to be seen.