In a deliberate move designed to make the country embrace the digital currency space, authorities in Slovenia have announced a new flat tax plan for the country.
The new flat tax, which was introduced to help simplify the process of digital currency transactions in the country, was pegged at 5%.
The Bill seeking to introduce the new tax rate was adopted during the session of the Slovenian legislature on Thursday.
Titled the Debureaucratization of the Taxation of the Redemption of Virtual Currencies, the bill was adopted alongside another one for the Ordinance on the Program for the Expenditure of the Climate Change Fund for 2022 and 2023.
New Tax Plan Would Help to Make Crypto Taxation Easier
With the adoption of this bill, Slovenians are now legally obligated to pay taxes on the value of all forms of cashed virtual currencies.
This payment is expected to take place in an administratively simple and very understandable way that provides the general government revenue from such taxation.
The new bill is also designed to ensure residents are encouraged to remit taxes through the inclusion of fractures that make the payment process easy to navigate.
“Legislation in this area will contribute to Slovenia’s more competitive position in the field of taxation of virtual currencies,” a statement released by the government after the adoption indicated.
The statement added that this would be even more significant due to the recent increase in the level of uncertainty surrounding the sector in the global financial markets, where virtual currencies are gaining in importance.
According to details surrounding the adoption of the bill, it was introduced as one of the effective means to help the country’s economy return to the right track in the post-COVID world.
Primarily, the aim will be to “debureaucratize” and simplify the current system. It is also expected to improve the country’s competitive position as crypto markets take off.
No 10% Tax
Recall that earlier in the year, the county’s Finance Ministry started receiving feedback from the public, especially those within the digital currency space, over the tax rate for crypto transactions.
The call for feedback, which closed on the 21st of February, was announced on the heels of the first draft on cryptocurrency taxation in the country. Then, the Ministry proposed a 10% taxation rate and a general tax exemption on up to EUR 10,000 of redeemed cryptocurrency per year.
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