The financial regulator in Slovenia has issued fresh proposals for a tax on digital currency, which could see residents in the country liable for a 10% charge on any digital currency income arriving in their bank accounts.
The Financial Administration of the Republic of Slovenia said it was considering the introduction of the charge on digital asset activity, in an upgrade to its current approach to taxing digital currency gains.
Under current legal provisions, the tax authorities assess individual transactions at an account level on a case-by-case basis, looking at both buy and sell side transactions to determine the amount of tax payable. The new proposals would tighten up the process, with the tax only crystallizing when digital currency is used to purchase goods or services, or when it is converted into fiat currency.
Any income so defined will become liable to the 10% tax charge, which the agency hopes will streamline the process of collection, while simplifying the tax basis for individuals living and operating in Slovenia.
In comments to local press, the authorities were keen to stress that the tax only kicks in when an amount is received in fiat into a bank account, or when the funds are used for an identifiable transaction.
“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.”
Slovenia has been at the forefront of shaping digital currency policy in Europe in recent years, developing a reputation as one of the most forward thinking jurisdictions in the continent for supporting innovation in blockchain and digital currency.
The new measures would provide greater clarity to the taxation applicable to digital currency activity in the country.
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