Poland Revises Crypto Taxation Law

Poland revises crypto taxation law, with the key purpose of the new bill being the facilitation of the tax system for cryptocurrency transactions. Reportedly, crypto-to-crypto transactions that are carried out on the stock exchange or individually will be free of tax.

30 August, AtoZ MarketsRegulators in Poland have reportedly introduced a new bill to clarify the current cryptocurrency taxation policy in the country. The document has been published on the government site of Poland earlier last week. The document has been further interpreted by the local cryptocurrency media outlets. 

Poland Revises Crypto Taxation Law

These reports state that a new document has been provided for consultation, as the Polish Council of Ministers is set to review it in the third quarter of 2018. The preceding taxation policy has been opposed by the country’s crypto community earlier this year. The policy has been taken into account and slightly changed. 

The key purpose of the bill is to make the tax system easy to apply for cryptocurrency transactions. 

Firstly, the bill stated that cryptocurrencies are a “digital representation of money” in terms of the Act on Counteracting Money Laundering and Terrorism Financing. Moreover, it is also stated that virtual currencies are divided into two groups, cryptocurrency, and centralized virtual currency. They are also allowed to be used as a medium of exchange and in e-commerce. Cryptocurrencies can also be used as means of payment. 

What's new?

Regarding the taxation, the bill refers to businesses and individuals. It states that crypto-to-crypto transactions that are carried out on the stock exchange or individually will be free of tax. In the meantime, income from selling services, goods, and property will be regarded as revenue for taxation purposes. 

The document highlights the crypto mining-related matters, stating that those who work for themselves will not pay tax, while others who work for entities or individuals will be charged. 

The present taxation system in Poland outlines 18% for an annual income of up to 85,500 zloty ($23,000), and 32% for any income above this limit.

Poland Cryptocurrency Regulations

The current year has begun with a massive cryptocurrency-opposing campaign in Poland. Earlier this summer AtoZ Markets reported that Poland has attempted to regulate specific aspects of cryptocurrencies. Some of the cases have appeared more concerning than others. Yet, none of the instances involved Polish regulator banning a particular crypto asset class. The country has, however, moved to adopt a position similar to other countries to regulate the cryptocurrency sector, aiming to prevent its use for criminal activities.

That time, the circular from the Polish regulator KNF has also emphasized the new regulations for Bitcoin and other cryptos that address the anti-money laundering and counter-terrorism concerns. 

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