Poland will introduce a tax on transactions with cryptocurrencies

Polish lawmakers have introduced a long-awaited new bill to clarify current cryptocurrency tax policies.

Taking into account the previous taxation policy, which was actively opposed by the country’s crypto community last year, the new document is designed to simplify the tax regime for cryptocurrency transactions and mining. 

First, the bill defines crypto assets for the purposes of the Anti-Money Laundering and Anti-Terrorism Financing Act as the “digital equivalent of money.” In addition, virtual currencies are divided into two groups - cryptocurrency and centralized virtual currency - and are allowed to be used as a medium of exchange, in electronic commerce, stored and accepted as a means of payment.

In terms of taxation, the bill applies to both individuals and businesses. Cryptocurrency transactions made on a stock exchange or individually will be subject to tax. Just like income from the sale of services, property and goods for cryptocurrency will be considered as income for tax purposes.

The new tax rules will also affect mining. If the miner is an individual, then the tax will be paid from the profit from the sale of mined crypto assets. If mining is carried out for a business by an entire pool, the cost of the miner's services is subject to taxation, like a salary. Citizens are required to fill out an annual declaration on conducting cryptocurrency activities and submit them to the relevant tax authorities.

The bill presented for discussion is planned for approval by the Council of Ministers of Poland in the third quarter.

This is not the first attempt to tax a profitable sector of the economy. A previous initiative by the Ministry of Finance to levy an 18% income tax on cryptocurrency transactions ended in massive protests from investors and was canceled in May. The official policy of the National Bank of Poland, directed against cryptocurrency in the country, did not find support among the population. The $250 thousand previously allocated by the Central Bank for a company against cryptocurrency and creation of anti-advertising sites for digital money did not affect the population’s interest in cryptoassets.