The Tax Treatment Of Income From Cryptocurrencies In Slovenia

• Published date: 19 September 2021
• Subject Matter: Tax, Technology, Income Tax, Capital Gains Tax, Fin Tech
• Law Firm: Eurofast
• Author: Ms Elena Korovina

There are currently more than 1000 different cryptocurrencies, amongst the best known are Bitcoin and Ethereum. Under the current regime, the tax treatment of income from virtual currency operations depends on the circumstances of each individual case. In principle, however, natural persons are required to pay capital gains tax on the sale of virtual currencies in the event that they generate such income in connection with the pursuit of their activities.

On August 31st the The Financial Administration of the Republic of Slovenia (Furs) has prepared a new proposal for the taxation of income from virtual currencies. They will propose that taxation starts at the limit of 15,000? of the amount of cryptocurrency redeemed, or of the profit generated by the sale of cryptocurrencies.

According to a proposal published on Furs, the tax would be paid on the amount of cryptocurrency redeemed in one of the currencies or on the amount spent to buy goods. The tax rate would be set at 10%.

The proposal has been supplemented with the possibility of taxing the profits generated in this way. In this case, the tax rate would be 25%.

"Taxpayers will therefore have a choice of two taxation options - according to the amount redeemed or according to the profit generated. Everyone will decide which option to choose," Furs said. They emphasize that this proposal applies only to the natural persons, who are tax...