Amid the ongoing wave of the global crypto crackdown, governments across the globe have been receiving considerable backlash from the community for imposing unrealistic taxation laws on crypto assets. However, in the latest update, Slovenia saw the Ministry of Finance send a bill regarding the tax on virtual currencies for public discussion this Tuesday by publishing the proposal on the e-democracy portal.
The proposal is written to the residents of the Republic of Slovenia, referring to the ‘Personal Income Tax Act’. According to the Slovenian crypto tax law, the authorities do not intend to target all crypto profits or businesses, rather it will be limited to the purchase of goods and services along with the conversion of crypto-assets into the traditional fiat currencies. Furthermore, under the Slovenian Income Tax Act, a 10 percent tax will be imposed on crypto to fiat conversions, and payments made with cryptocurrencies. However, the bill also incorporates an exemption for the residents from paying the tax, if the annual amount is under 15,000 euros, i.e., $17,387.
“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.”, a local news house quoted the authorities.
South Korea among other countries with hefty crypto tax
The imposition of hefty crypto taxes has become a core part of countries’ crypto crackdown. The South Korean government recently reinstated its unshakable stance towards the timeline for the implementation of crypto tax laws in the nation. According to official statements, the cryptocurrency taxation policy will be implemented by January 2022 and will impose a 20% tax on the profits of crypto transactions. While the Korean government has been consistently criticized for its unrealistic taxation policies and timeline, they stand strong in their anti-crypto decisions.
Earlier this month, at a parliamentary audit by the National Assembly’s Planning and Finance Committee, Deputy Prime Minister and Minister of Strategy and Finance, Hong Nam-ki stated, “It is judged that it is difficult to re-adjust or postpone the taxation of virtual assets in terms of legal stability or policy reliability.”
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.