Poland Suspends Decision of Taxing Cryptocurrency Transactions

Poland’s finance ministry published an update of the country’s tax ‎code, stating that it will not tax income from transactions on ‎cryptocurrencies.‎

The MoF justified its taxing decision by stating that it considers conducting an in-depth analysis to better regulate the emerging industry.‎

Under this provision, cryptocurrency traders will get tax exemptions after they were ‎required to pay two tax brackets of 18 percent and 32 percent regardless ‎of whether they made a profit.‎

More painful for digital currency traders in Poland, the ministry’s ‎guidance had previously considered the cryptocurrency transaction a ‎transfer of property rights, which triggers a 1 percent levy on the ‎market value of each trade.‎

The ministry’s updated stance was published nearly three weeks after the ‎deadline for Poles to file their annual personal income statements, ‎which came to effect on April 30.‎

The Polish government has recently announced a crackdown on cryptocurrencies amid growing concerns that the digital currency is being used for money laundering and tax evasion. The Council of Ministers has adopted a draft law to regulate Bitcoin and other cryptocurrencies to bring them in line with anti-money laundering and counter-terrorism financial legislation.

The ministry’s statement, translated using Google, further reads:‎

‎”In consequence of the adoption of such interpretation, if trading ‎cryptocurrency is made on the basis of a contract of sale or exchange, it ‎becomes subject to tax on civil law transactions. Taking into account ‎the specificities of virtual currencies, which boils down to rotate ‎the rights of property through their purchase, sale and the exchange, ‎and therefore the repeated conclusion of sales and exchange ‎contracts, on the side of the entity trading virtual currency may arise ‎the obligation to pay tax in an amount often exceeding the funds ‎invested.”

‎”Temporary abandonment of tax collection will allow for an in-depth ‎analysis and preparation of system solutions regulating this economic ‎space, including in the tax context,” it concluded.‎

(Photo: pixabay)

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