Slovenia is one of the Cryptocurrency Tigers around Europe.
Last April the Finance Ministry of Slovenia proposed a law to levy a 10% tax on all fiat-to-crypto conversions and cryptocurrency transfers. Now the country is getting ready to start taxing cryptos. Given that this will work out as an experiment in the eyes of several countries if everything goes well many other countries in Europe should follow.
Thing is, it puzzles me how are they going to tax cryptos... what sort of technics will the country develop to track all cryptocurrencies in circulation?
Other countries are much worse though, around 30% or more. I am not sure about Slovenia’s specific rules on taxing cryptocurrencies. It’s much worse if they are going to tax unrealized gains like the proposal of Nancy Pelosi in the United States. It’s much more difficult to tax if transactions are done on a P2P basis and not going into centralized exchanges. This is a challenge for the Slovenian government.
As for my home country the Philippines, we can only get taxed once we simply converted crypto to fiat and withdraw it to bank, mobile payment processor, etc., as realized income.