There is a new bill in Poland that clarifies Cryptocurrency taxation. The bill also differentiates between decentralized cryptocurrencies and centralized virtual money, and clarifies the tax regime applicable to crypto trading and mining.
This new bill has been published on the website of the Government Legislation Center. And its adoption might likely start in September by the Council of Ministers.
The aim of this bill is to make easy and simple the processes for reporting and paying taxes on revenues from crypto-related activities.
The new proposals come after an earlier decision to tax all digital money transactions, regardless of profit or loss, sparked protests from the Polish crypto community. The Finance Ministry admitted “the irrational effect” of the Civil Law Transactions Tax (PCC) in the case with cryptocurrencies and abandoned the idea to impose it until a comprehensive solution is found.
In accordance with the Act on Counteracting Money Laundering and Terrorism Financing, the draft law defines virtual currency as a “digital representation of value.”
According to Kryptowaluty reports, Virtual currencies was divided into two groups – cryptocurrency and centralized virtual currency. Even more importantly, the legal text details that virtual currencies can serve as a medium of exchange and be accepted as means of payment, they can be stored and transferred electronically and used in e-commerce.
Cryptocurrency miners are also expected to pay taxes on their profits but the tax base will be determined depending on the nature of their economic activity.
What is your opinion on the well defined cryptocurrency taxation that is now in Poland?