Slovenian crypto tax proposition

[Daniel91]

I hope that the rest of the European Union will take the same approach that Slovenia did.

I sincerely doubt that something like this will happen, when it comes to taxes, each country has its own rules. If EU member states want to create a favorable framework for investing in cryptocurrencies, then they already have several templates used by some EU member states. The point is that politicians in all countries do not have the same level of knowledge and will to regulate this way of investing - and this only contributes to uncertainty and confusion among investors.

Isn't there some judgment of the EU court on cryptocurrencies?
I think I read it somewhere but now I can't find it.
In fact, in my opinion, it would be logical for the European Central Bank and the EU Council to give an official opinion on cryptocurrencies and then for all EU countries to implement it in their tax and other laws and regulations.
A lot of things are very well regulated in the EU, there are many rules and regulations, but there is no official decision for cryptocurrencies yet, which is a bit unusual.
I really like the Slovenian proposal on cryptocurrencies and I hope that something similar will become a reality in other EU countries, such as Croatia, but I am not optimistic.

[teosanru]

Slovenian government wants to simplify crypto taxation by proposing either 10% tax on converting crypto to fiat/spending on goods and services or alternatively pay 25 % on the profit you make. Amounts up to 15.000 € per year would not have to be reported.

https://www.total-slovenia-news.com/business/8821-slovenia-changes-proposed-cryptocurrency-tax-10-tax-on-amount-sold-of-25-of-profit

This is a great move I think by Slovenia because this tax rate of 10% is quite less if you compare it with normal tax rates in the countries which means people using cryptos would be in a better situation with taxes if they use cryptos instead of using fiat, lately a lot of countries are struggling with crypto taxations so this type of solution can be used by other countries too, but the problem here would lie in enforcement, for conversion into fiat you can obviously trace down with exchanges but if a person pays directly for goods and services there is no way you can find out about this transaction if he decides not to declare it. This can be a pretty easy method of tax evasion. It will be interesting to see how Slovenia enforces this.

[zeuner]

I hope that the rest of the European Union will take the same approach that Slovenia did.

I sincerely doubt that something like this will happen, when it comes to taxes, each country has its own rules. If EU member states want to create a favorable framework for investing in cryptocurrencies, then they already have several templates used by some EU member states. The point is that politicians in all countries do not have the same level of knowledge and will to regulate this way of investing - and this only contributes to uncertainty and confusion among investors.

Isn't there some judgment of the EU court on cryptocurrencies?
I think I read it somewhere but now I can't find it.

The ECJ has ruled that there is no value added tax imposed when Bitcoin is sold (C-264/14), thereby securing the foundation of Bitcoin being used similarly to stocks or fiat currencies.

When it comes to income tax, I think the member states are still pretty free in the rules they create.

[zasad@]

https://cointelegraph.com/news/slovenia-finance-ministry-floats-25-tax-on-crypto

Slovenia’s finance ministry floats 25% tax on crypto transactions
Jernej Vrtovec, the representative of the New Slovenia opposition party, has slammed the proposal over fears it will stifle crypto growth in the country.

"Slovenia’s Finance Ministry is considering a possible 25% tax on crypto trading profits for residents in the country under a new draft law now open for public consultation.

The bill proposes to tax traders when they sell their cryptocurrency for fiat or pay for goods and services, but crypto-to-crypto and transfers between wallets owned by the same user will be exempt, Slovenia’s Finance Ministry said in an April 17 statement."

[YOSHIE]

Slovenian crypto tax proposition

I think the law and rules of Slovenia are quite interesting, they only use 25% tax from the profits of crypto traders, so for crypto-to-KE-KRITO transactions they do not impose taxes, this is very different from the tax rules imposed by the government of our country, 12% of transactions onLocal Exchange.

As quoted

At present, Slovenian law imposes taxes on crypto income earned by business, but individual investors enjoy a gray zone that allows them to reap substantial benefits without tax. Changes It is proposed aiming to end this inequality and establish a more balanced framework for capital profits in the entire asset classes.

Slovenian Law is different from the laws in force in my country to Crypto Tax, Slovenia Perfect Examples.

[SFR10]

Jernej Vrtovec, the representative of the New Slovenia opposition party, has slammed the proposal over fears it will stifle crypto growth in the country.

He's right... From being considered a crypto tax haven country ^{[for hobbyists (tax exemptions), as opposed to businesses]} to what it's about to become, it'll surely hinder its growth.

"Slovenia’s Finance Ministry is considering a possible 25% tax on crypto trading profits for residents in the country under a new draft law now open for public consultation.

Apart from the 25% tax, another "key point" in the same bill caught my attention by mentioning a 40% tax for those who'd voluntarily go with the simplified calculation route for their income taxes, and it goes back up to five years ^{[I had to rely on Google's translation services, so I'm not sure if something is lost in translation]}.

[zasad@]

Jernej Vrtovec, the representative of the New Slovenia opposition party, has slammed the proposal over fears it will stifle crypto growth in the country.

He's right... From being considered a crypto tax haven country ^{[for hobbyists (tax exemptions), as opposed to businesses]} to what it's about to become, it'll surely hinder its growth.

"Slovenia’s Finance Ministry is considering a possible 25% tax on crypto trading profits for residents in the country under a new draft law now open for public consultation.

Apart from the 25% tax, another "key point" in the same bill caught my attention by mentioning a 40% tax for those who'd voluntarily go with the simplified calculation route for their income taxes, and it goes back up to five years ^{[I had to rely on Google's translation services, so I'm not sure if something is lost in translation]}.

Thanks for the link, it looks very much like Russian. I can read and understand many words without a translator.

As I understand it, the tax office offers to legalize income for the last 5 years at a rate of 40%. But I do not understand the mechanism of this scheme, I need to study the methodological recommendations for filling out a tax return.

In some cases, traders will have no choice, those who trade on exchanges without KYC, then they do not need it.