According to an article by blocktribune.com, “Poland’s Government Legislation Centre has published a new draft bill that clarifies the country’s current crypto taxation policy.”
The draft bill elucidates that cryptocurrencies can be used as a mode of payment, is allowed for use in e-commerce, can serve as means of exchange and are stored and transmitted electronically. This means that the draft bill views cryptocurrencies as a “digital representation of value.” The purpose of the draft bill is to simplify the taxation procedures and income reporting for the cryptocurrency-related activities. It has been offered for consultation and separates virtual currencies into centralized virtual currency and cryptocurrency.
The Central Bank of Poland admitted to funding $27,000 worth of content aimed against crypto which was broadcasted by the local press before being published on YouTube. The social media materials were funded by 615,000 Polish złoty (US$ 165,257.51) on risks associated with pyramid schemes, cryptocurrencies, and forex trading.
The bill addresses the taxation of both individuals and corporate entities. Any crypto-to-crypto transactions performed on the stock exchange, or individual will be tax-free. Any income generated from selling services, property, and goods for cryptocurrency will be treated revenues from capital gains. Also, crypto miners who are mining individually won’t be taxed. However, crypto miners have to pay taxes if they are working for a company. Miners were looking to convert their cryptocurrency into FIAT money before paying their clients, then the whole amount will be treated as revenue and will be taxed.
The current taxation system in Poland is 18% and provides 32% for annual incomes above 85,500 Polish złoty limit. It’s not necessary for taxpayers dealing with cryptocurrency to pay tax in advance. Cointelegraph reported in June 2018 that Polish crypto owners blamed banks for selectively closing accounts and purposefully denying services to cryptocurrency entities. The new draft bill is expected to be reviewed in the third quarter of 2018 by the Polish Council of Ministers.