Slovenia Crypto Tax

The nature and structure of the business activities that a company conducts determine whether or not taxes in Slovenia apply. Whereas the country is imposing new crypto-specific taxes on individual crypto traders, it does not enforce any specific taxes on crypto economic activities carried out by companies and thus are obliged to follow general rules harmonized with EU regulations and international global standards.

The national authority responsible for the collection and administration of national taxes is The Financial Administration of the Republic of Slovenia. It works to ensure social and economic security, protection of society, prevention, and elimination of prohibited activities. Besides that, the agency partners with international authorities so as to secure fair taxation and boost foreign investments.

Slovenia is a member of the Organization for Economic Cooperation and Development OECD, whose role is to develop standards and promote policies that improve economies of the member countries. Slovenian crypto companies should also know that the ​​OECD has introduced a new global tax transparency regime, the Crypto-Asset Reporting Framework, which is targeted at increasing and maintaining crypto taxation and tax reporting thresholds. It will be delivered via automated tax reporting and taxpayer information sharing between international tax authorities. While some businesses may be exempt, crypto exchanges and transfer service providers fall under the purview of the new regulations.

Advantages of the Slovenian Tax System

With the motive of not having double taxation of the taxpayers in two different countries, Slovenia has signed more than 50 international agreements on the elimination of double taxation. Quite an extensive network that crypto businesses having resident status in Slovenia can avail. Worth noting that these agreements do not stipulate granular details for taxation. Instead, they reduce the right to tax of the contracting countries and the source of taxation can be found in the domestic laws of the contracting countries. Generally, these double taxation agreements encourage international economic activities.

Other important benefits of the Slovenian tax system are that Slovenian tax legislation allows tax reliefs for the employment of disabled people, student apprenticeships, voluntary supplementary pension insurance, donations, and investments in research and development (R&D) activities.

As far as government support of R&D activities is concerned, the generosity of R&D tax incentives in Slovenia has gained momentum over time, and Slovenia is above the OECD average, which indicates that Slovenia is open to innovation and committed to making sure innovative businesses have room for growth. Slovenia provides R&D tax relief through a 100% R&D tax allowance on the volume of qualifying R&D expenses within the tax period.

They are internal R&D activities within the company and machinery and equipment acquisition costs. Where there is insufficient tax liability, unused credits can be carried forward for five years. The upper ceiling now applies to the total reduction of the tax base due to tax reliefs and tax losses from previous tax periods, where the same could not exceed 63% of the tax base in the current tax year.

Corporate Income Tax

The standard Corporate Income Tax rate in Slovenia is 19%, representing a number of different types of income sourced during a tax period. Tax residents of Slovenia are taxed on income sourced in Slovenia as well as elsewhere, whereas tax non-residents are subject only to tax on the income arising in Slovenia, such as by PEs located in Slovenia. A company is considered to be a Slovenian tax resident if it has its legal seat or place of effective management in Slovenia.

Taxable income represents any profit realized from economic activities of the company, minus any qualifying deductible expenses. The latter must be documented with due care. If the revenue in the previous year didn’t exceed the threshold of 50,000 EUR, such a company may take a decision and instead of actual expenses deduct a lump sum amounting to 80% of its annual revenue. In the case of those which hire at least one employee on a full-time basis for at least five months, the threshold is 100,000 EUR.

Where the company’s tax period corresponds with the calendar year, tax returns are due to the tax authority by the 31st of March from the current year for the previous year’s economic activities. If the tax period instead is linked with the business year, it will normally be the case that tax returns are submitted within three months from the beginning of the current business year for the previous business year. The tax returns are filed in electronic format via an appropriate electronic system, to which only those taxpayers who have a relevant digital certificate can have access.

Withholding Tax

The conventional rate of the Withholding Tax is 15%. The tax is required to be calculated and withheld on the payments made to recipients outside Slovenia by tax residents and non-residents on income sourced in Slovenia. Dividends, interest, copyrights, patents, and licences are subject to tax.

The Withholding Tax is also applicable to certain types of services-e.g., consulting, marketing, staffing, and administration-if the country where they were provided is listed in a published list by the Ministry of Finance and if that country’s Corporate Income Tax rate is below 12.5%.

If there are special provisions found in double taxation agreements, the rate could be lowered. Exemptions can be considered if the Interest and Royalties Directive along with the Parent-Subsidiary Directive allows it. Furthermore, tax does not apply on dividends paid to a parent company established in any other EU member state if such dividends are exempt from tax on receipt by the shareholder.

Capital Gains Tax

The general rate of Capital Gains Tax amounts to 25%. It is levied on interests, dividends, and any other type of income. The tax on capital gains is considered to be a final tax for taxpayers, regardless of their residence status. The interest acquired on bank deposits up to 1,000 EUR from banks or saving banks registered in Slovenia or another country within the EU is not taxable.

The capital gain rates have inversely related with the increase in holding period and applicability of rates differs according to the following slabs:

• Holding period from 0 to 5 years – 25 %
• Holding period from 5 to 10 years – 20%
• Holding period from 10 to 15 years – 15%
• Holding period exceeding 15 years – 0%

Value-Added Tax

The standard Slovenian VAT rate is 22% and generally applies to all kinds of products and services sold in Slovenia. The VAT Act is aligned with the EU directives and is part of the EU’s common VAT system. Many startups do not necessarily need to register for VAT straight away. The registration threshold for VAT within Slovenia is 50,000 EUR. But this does not apply to taxable foreign persons. The appointment of a fiscal representative in charge of the payment of VAT is required when the business turnover exceeds 50,000 EUR within the previous 12 months for non-EU firms. A separate VAT return shall be filed for each tax period, even if no transactions have taken place.

The Slovenian tax authority has not yet published a detailed guidance on the value-added tax treatment of particular crypto products and services. However, since Slovenia is a member of the EU, from the decision of the Court of Justice of the European Union, it is pretty obvious that cryptoassets like Bitcoin can be exchanged without VAT within the EU. This is because crypto transactions have been put in the same bucket as traditional currency, banknotes, and coins used as legal tender.

Payroll Contributions in Slovenia

Under the law, every crypto company operating in Slovenia is obliged to withhold, file, and remit various payroll contributions on behalf of its employees. Payments are made on a monthly basis, usually on the last working day of each month.

The Personal Income Tax – progressive rates are as follows:

• If the taxable income ranges from 8,756 up to 11,166 EUR – 24%
• If the taxable income ranges from 11,167 up to 13,577 EUR – 29%
• If the taxable income ranges from 13,578 up to 16,008 EUR – 34%
• If the taxable income exceeds 16,009 EUR – 39%
• For the tax income between 8,755 EUR and 25,750 EUR – 26%
• For the tax income between 25,750 EUR and 51,500 EUR – 33%
• For the tax income between 51,500 EUR and 74,160 EUR – 39%
• For the tax income in excess of 74,160 EUR – 50%

Payroll Contributions: As a general rule, employers are required to make the following payroll contributions as under, based on the individual employee salaries:

• Pension: 8.85%
• Health insurance: 6.56%
• Unemployment – 0.06%
• Work injury – 0.53%
• Parental leave – 0.10%

The following payroll contributions must be paid by employees:

• Pension – 15.50%
• Health insurance – 6.36%
• Unemployment – 0.14%
• Parental leave – 0.10%

Our team of dedicated and quality-focused legal consultants here at Regulated United Europe (RUE) would be more than glad to support you individually with value added in optimizing your taxes in line with applicable legislation, should you want to successfully and sustainably run your crypto business in this crypto-friendly European jurisdiction. We also provide full-scale services for Slovenian crypto company formation, crypto licensing, and financial accounting. Feel free to contact us for a personal consultation.

Besides all that, lawyers of Regulated United Europe provide legal support for crypto projects and assist in adaptation to MICA regulations.

Slovenia Crypto Tax 2024

Slovenia stays in the avant-garde position regarding the European regulation and taxation of cryptocurrencies in 2024 and offers one of the most progressive and innovative regulatory frameworks. This country, which has worked hard to create an enabling environment for developing blockchain technologies and cryptocurrencies, is taking further steps toward strengthening its status as a center of crypto innovation.

Regulation of Cryptocurrencies

Regulation of cryptocurrencies in Slovenia is done by various authorities, depending on the nature of activities related to crypto-assets. The main regulator in the financial services sector is the Bank of Slovenia; it cooperates with the Securities Market Agency in supervising cryptocurrency transactions in terms of whether they are in line with legislation concerning financial services and anti-money laundering and terrorist financing.

Taxation of Cryptocurrencies

The basic principles that are applicable concerning the taxation of cryptocurrencies in Slovenia in 2024 are as follows:

Capital Gains: Income derived from the sale of cryptocurrencies is subject to a capital gains tax for individual investors. Tax rates are variable depending on the time duration for which the asset has been held and the amount of profit.

Income from Mining: Income from mining of cryptocurrencies is to be considered as taxable income and will thus be subject to taxation under the general rules of taxation of income for natural and legal persons.

VAT: According to the European Court’s position, any transactions with cryptocurrency considered as a means of payment are exempt from VAT. The same rule applies in Slovenia, thus making transactions with cryptocurrencies more appealing for all sorts of business activities.

Corporate Income Tax: An organization engaged in activities involving cryptocurrency should include income from those activities in their general tax base and be taxed at the general corporate rate.

Tax Innovations

Slovenia is considering further simplification of the taxation of cryptocurrencies, including the introduction of clearer criteria regarding the determination of tax liabilities and declaration of income from cryptoassets. What is important is to make the tax system fair and transparent to create an environment for the growth of innovation in the field of cryptocurrency.

The year 2024 brings Slovenia to the forefront in taxing and regulating cryptocurrencies, setting a very transparent and understandable regulatory environment. Such an approach contributes not only to the development of the crypto industry at the national level but also attracts foreign investors interested in having a stable and friendly jurisdiction for their activities related to cryptocurrencies and blockchain. With that being said, Slovenia has continued to be that country which depicts how effective regulation and proper tax policies spur innovation and enhance economic growth.

How Do I Pay Taxes on Crypto in Slovenia in 2024?

Even in 2024, the taxation of income from cryptocurrencies is one of the hottest topics among investors and users of digital money. Slovenian tax legislation does provide special provisions for declaration and payment of taxes on income received from trading and investment in cryptocurrencies. The following paper will closely analyze in detail the steps and requirements to be followed in adhering to Slovenia’s law on cryptocurrency taxation.

Basics of Cryptocurrency Taxation in Slovenia

Slovenian legislation treats revenues from cryptocurrencies, depending on the type of activity, either as capital gains – in a case of investments – or income from business activities. An important aspect is the frequency of transactions and their volumes, whether they are carried out, and whether they constitute the main source of revenues.

Tax on Capital Gains

Income from cryptocurrencies is considered a capital gain – that is, gains from investments – and is therefore subject to taxation. The tax rate varies based on the length of time that the asset has been held in possession:

• The gains from sales of cryptocurrencies held for a period less than two years are taxed according to the capital gains rates.
• The gains from sales of cryptocurrencies after holding them for two years are exempt from taxation.

Taxation of Business Profits

If the trading of cryptocurrencies is regular and constitutes a significant part of one’s revenues, such activities can be considered as business activity. In this case, this is subject to corporate income tax or personal income tax depending on the legal status of the taxpayer.

Declaration Process

Pay your taxes on cryptocurrency income in Slovenia by following these steps:

Determine the type of income (capital gains or business activity)

Calculate the value of income or profit which is liable to taxes.

Mention the income at the time of filling tax return in accordance with its nature.

Tax Rates

Capital Gains Tax: Its rate is variable and depends on a taxpayer’s total income in a year of taxation.

Tax on income from business activities: The corporation income tax rate is 19%. If related to individuals, the tax rate is determined in accord with their scale.

Record-Keeping: The Cornerstone for Tax Declaration of Cryptocurrencies in Slovenia

Accurate record-keeping is indispensable in declaring income from cryptocurrency in Slovenia. Records should indicate the date of buying and selling the cryptocurrency, the value in EUR at the time of the transaction, and the realized profit or loss. Such a methodology will make the declaration process easier and yield a better optimization of tax liabilities.

Seek Professional Help

Considering the complications of tax laws and the ever-evolving nature of cryptocurrency markets, it is highly advisable to get professional help. A tax advisor or auditor can be very helpful in updating the rates, exemptions, and liabilities. Preparation of tax returns accordingly.

After all, tax laws do change, and the field of cryptocurrencies is still developing. It would, therefore, be prudent to keep up with news and changes in the Slovenian Tax Code for complete compliance with taxation.

Slovenia views cryptocurrency income within its general policy of regulating digital currencies and protecting the principles of fair taxation. In this respect, acquaintance with the taxable obligation and compliance will do much to avoid possible penalties and optimize the tax burden. By using planning and attention to detail, including professional services, the process of managing cryptocurrency assets will become more transparent and effective.

Overview of Main Tax Rates – Slovenia – 2024 by KPMG

Personal income tax, Corporate income tax, Value added tax, Taxation of income from cryptocurrencies.

These rates give an overview of the general Slovenian tax system; however, please note that laws regarding taxation are subject to change, and there may be conditions specific to your case or deductibles available.