FURS proposes special tax on cryptocurrencies

Ljubljana – The Financial Administration (FURS) has proposed changing how income from cryptocurrencies is being taxed so that a 10% tax rate would be imposed when the cryptocurrency is spent or turned into cash.

The administration proposes the tax, at a rate of 10%, be paid on the amount of cryptocurrency turned into another currency or spent for goods or services.

“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,” said FURS.

They are proposing adopting the new system to tax cryptocurrencies by passing a new law.

It would be a major simplification for FURS as they would no longer need to examine the many transactions the taxpayer has performed in between or how many cryptocurrencies they have bought or sold.

There are currently more than 1,000 different cryptocurrencies, the best known of which are Bitcoin and Ethereum.

Under current legislation taxable income from virtual currencies depends on the circumstances of each individual case but as a rule physical persons need too pay capital gains tax from selling cryptocurrencies when they make the income as business.

This typically involves excessive number of transactions, even tens of thousands, but the increasingly digitalised world calls for simple taxation solutions, said FURS.

Under the new solution that is being proposed the taxpayer would have to prove they incurred a loss, which means that all transactions would have to be examined.

The post FURS proposes special tax on cryptocurrencies appeared first on Slovenia Times.