Poland Releases a New Bill for Crypto Taxation

by Jane Whitmoore

As first reported by the local media outlet Kryptowaluty, the document will be evaluated by the Polish Council of Ministers by the end of September 2018.

The new regulations come as an update of the taxation policy which was adopted earlier this year. According to the government, the aim of the new document is to simplify the cryptocurrency transactions tax strategy.

Cryptocurrencies are defined as a digital representation of money in terms of the Act on Counteracting Money Laundering and Terrorism Financing. They are put into two separate groups – cryptocurrencies and centralized virtual currencies. Both of them can be exchanged and used as a payment method for physical assets and services.

The brand-new bill will affect both citizens and businesses. Transactions which are crypto-to-crypto will be tax-free and revenue from cryptocurrencies like property and selling goods, and services will be a subject of taxation.

The official paper also covers cryptocurrency miners and states that individuals who are providing income for themselves are not required to pay any taxes. Others with businesses or those working for other people will be affected.

Poland‘s taxation system is set at 18 percent for a yearly income of 85,500 zloty which is around 23,000 dollars.  Those who earn more than this yearly threshold are charged 32 percent.

The current year in Poland started with anti-cryptocurrency slogans and in February, the country‘s Central Bank was indicted for funding 27,000 dollars worth of content against cryptocurrencies. The news was popularized on Youtube and broadcasted by the media.

More campaigns against cryptocurrencies emerged in May and social media materials were funded by the Financial Supervision Authority.

Cryptocurrency investors were offended and accused Polish banks of refusing service and intentionally closing their accounts.