Although Slovenia is small, it is one of the fastest growing countries in Europe, especially in terms of business and economy. After successfully inheriting from Yugoslavia’s economy, it became the first country to join the European Union in 2004, and it is the richest Slavic country in terms of GDP per capita. Encryption adoption in Slovenia has grown rapidly over the years. Its citizens have relatively high awareness of cryptocurrency.
Proposed crypto tax bill
According to reports Local average, The Monetary Authority of the Republic of Slovenia (FURS) made a proposal to change the country’s crypto taxation rules. The proposal aims to introduce a 10% taxable income bill for cryptocurrency asset activities in the near future. The country’s tax authorities claim that this change will greatly simplify the taxation of crypto-related income.
Total crypto market rises to $2.28 Trillion | Source: Crypto Total Market Cap from TradingView.com
Currently, the authorities must analyze individual encryption activities on a case-by-case basis. It examines the large number of transactions that taxpayers make between the purchase and sale of digital currencies and the various cryptocurrencies they buy, sell or convert. If the amendment is introduced, the financial management department will specify that it will no longer need to go through this stagnant and tedious encryption management process.
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“What we want to emphasize is that it is not profits that should be taxed, but the amount that Slovenian tax residents receive from their bank accounts when they convert virtual currency into cash or purchase items.” According to media reports, FURS said.
Slovenia adopts cryptocurrency
Recently, Slovenia has positioned itself as a hot spot for blockchain and cryptocurrency related activities. With an estimated population of 2 million, the country has more physical locations that accept cryptocurrency payments than the entire United States.
according to CryptocurrencyBy 2020, there are now more than 1,000 locations that allow cryptocurrency payments, including cafes, restaurants, dentists, hair salons, and hotels. At the beginning of 2019, it was the only country in the world that could survive on cryptocurrency alone.
Featured image from The Slovenia Times, Chart from TradingView.com