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Cryptocurrency Tax

Polish Legislators Introduce New Bill that Will Clarify Crypto Taxation

The crypto taxation policy that was put in place in Poland had been cause for a lot of murmurs and had also raised more questions than answers. After what crypto enthusiasts in the country felt like an eternity of waiting, the Country’s legislators have moved to quell the murmurs. Polish legislators have sponsored a bill that will clarify the taxation policy on crypto that is currently in place. The document presented by legislators was posted on the polish government site on the 24 of this month and put out by the local crypto media publication Kryptowaluty on the next day.

Kryptowaluty explained that the newly released document has been handed to the polish council of ministers who will review it in the third quarter of this year. The previous taxation system that had been put in place had faced loud and widespread criticism and resistance from members of the crypto community in the country. The polish government explained that the bill that has been presented seeks to simplify the taxation system in the country when it comes to crypto transactions.

The new bill first defines cryptos in terms of counteracting money laundering and the financing of terrorism, defining it as a “digital representation of money”. Virtual currencies are divided into centralized virtual currency as well as well as cryptocurrency and are capable of being used as a means of exchange in e-commerce, and also as a means of payment. The new bill addresses both individuals and business entities by having tax free crypto to crypto transactions. Entities generating income, however, either through the sale of goods, property or services will be taxed just as with fiat currency as they will be treated like revenue.

The document also outlines how the taxation will impact crypto miners. It clearly explained that miners who worked on their own or for themselves would not be taxed; those working for mining entities or individuals will be obliged to pay taxes though as with all other employees. The current taxation rates in Poland stand at 18% for those with an annual income of up to 85,500 zloty equivalent to $23,000 and 32% of all incomes above the current number. Poland has been pretty crypto averse since the advent of the blockchain.

The start of 2018 saw a massive campaign sponsored by the country’s central bank against cryptocurrency. The main bank admitted to funding about 27,000 worth of anti-crypto content in the country. A lot of this country was posted on YouTube and broadcasted on the local press. The polish crypto-community, however, hit back by criticizing the campaign and also speaking against newly imposed taxation on crypto transactions. The massive criticism from the crypto community forced the country’s finance ministry to look into seeking more convenient crypto regulations that will suit everyone.

Author: Kelvin

I am a crypto enthusiast based in Nairobi Kenya, who loves investing, research writing, reading, fitness, African food, and soccer.

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I am a crypto enthusiast based in Nairobi Kenya, who loves investing, research writing, reading, fitness, African food, and soccer.
I am a crypto enthusiast based in Nairobi Kenya, who loves investing, research writing, reading, fitness, African food, and soccer.

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