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Slovenia Unveils Plan for Flat Tax on Crypto Transactions
The rate would be just under 5%, according to the government.
The Slovenian government Thursday unveiled a flat-rate tax proposal on crypto redemptions and asked the Slovenian Parliament to move quickly to approve it.
The proposed tax, which is part of the government's post-COVID recovery plan, would be due when virtual currencies are sold or exchanged, and would be set at an effective rate of just under 5%. The goal is to help “debureaucratize” and simplify the current system, and improve Slovenia's competitive position as crypto markets take off, the government said.
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If the legislation passes, Slovenia “will be one of the few countries, if not the only country in the world ,with such a simple taxation” for digital currencies, according to the press release announcing the proposal.
This law was first introduced by the country’s financial agency last year. Documents published by the government suggest that the tax will be charged at 5% of the value of the redemption, after subtracting an allowance of 10,000 euros ($10,900).
Read more: Slovenia Financial Agency Proposes New 10% Crypto Tax
Jack Schickler
Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He previously wrote about financial regulation for news site MLex, before which he was a speechwriter and policy analyst at the European Commission and the U.K. Treasury. He doesn’t own any crypto.
