Poland Clarifies Its Stance on Cryptocurrency Taxation

  • Polish legislators have recently introduced a new bill addressing cryptocurrency taxation. 
  • The bill addresses how cryptocurrencies are seen and what types of use will be taxed.

Polish legislators have recently introduced a new bill that’s set to clarify how cryptocurrency taxation works in the country. The document addresses both cryptocurrency transactions and cryptocurrency mining.

According to local crypto news outlet Kryptowaluty, the Polish Council of Ministers is set to review the new bill in the third quarter of this year, presumably to determine whether or not it achieves its goal of simplifying cryptocurrency taxation.

The document justifies its purpose, according to the news outlet, stating:

The project includes solutions addressed both to entrepreneurs and to individuals who do not run a business.  The purpose of the regulations introduced or modified by this Act is [a] broadly understood simplification of tax law regarding income taxes and further tightening of the tax system.

The bill reportedly defines cryptocurrencies “within the meaning of the Act of Counteracting Money Laundering and Terrorism Finance,” which means cryptocurrencies are seen as a “digital representation of money.”

These are then split into two categories – “cryptocurrency” and the “virtual digital currency” – both of which can be used as an accepted medium of exchange, electronically stored or transferred, and used in e-commerce.

Cryptocurrency-related revenue, per the news outlet, will be treated like revenue for tax purposes. Cryptocurrencies sold on crypto exchanges or on other markets will be taxed as revenue. On the other hand, cryptos earned through the sale of goods and services, or through properties will be taxed according to the price of the good or service.

As for cryptocurrency miners, their earnings are only set to be taxed if they mine on behalf of an organization or individual. If they mine for themselves and later on sell the cryptocurrencies they have, they’ll only be taxed when selling them.

Notably, the document reveals crypto-to-crypto transactions, done on a cryptocurrency exchange or not, won’t be taxed. The bill may be significant in the country, as Poland has seen cryptocurrency exchanges move to other legislations over a banking blockade the firms have suffered.

As CryptoGlobe covered, the country was the first to put banking records on the blockchain, after starting the year with a campaign against cryptocurrencies that saw Poland’s central bank pay a YouTuber about $27,000 to create a video discrediting cryptos.

Later on, in May, Poland’s Financial Supervision Authority (KNF) launched a similar attack against cryptocurrencies, that saw it fund a social media campaign to discredit them.

Note: Some sentences in this article were translated from Polish.