Slovenia’s financial authority has announced new suggestions for a digital currency tax, which could see inhabitants of the country charged a 10% fee on any digital currency income that reaches their bank accounts.

In an update to its current strategy to taxing digital currency profits, the Financial Administration of the Republic of Slovenia said it was considering imposing a charge on digital asset activity.

Under present legal rules, tax authorities analyze individual transactions on a case-by-case basis at the account level, looking at both buy and sell-side transactions to determine the amount of tax owed. However, the latest plans would tighten the process by imposing a tax only when digital currency is used to buy goods or services or changed into fiat currency.

Any income falling within this definition will be subject to a 10% tax charge, which the agency expects would simplify the collection process while also simplifying the tax basis for those living and working in Slovenia.

The authorities quickly pointed out in comments to the local press that the tax only applies when money is received in fiat into a bank account or when the funds are used for a specific transaction.

“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.”

In recent years, Slovenia has been at the forefront of crafting European digital currency policy, earning a reputation as one of the continent’s most forward-thinking jurisdictions for encouraging blockchain and digital currency innovation.

The new laws would make the taxation of digital currency activity in the country more transparent.

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