Crypto Mining

New Bill Clarifies Crypto Taxation in Poland

There is a new draft that introduces regulations regarding the crypto income taxation which currently publishes in Poland. The bill distinguishes among the centralized virtual money and decentralized cryptocurrencies which helps in clarifying the tax administrations for crypto mining and trading application.

In brief, the amendment differentiates between centralized coins and cryptos. Portland’s executive power has announced a new draft implementing the country’s law regarding the taxation and its imposition in incomes and profits that are related to cryptocurrencies.

This news officially reports from the statement released on the website of the Government Legislation Center. This document of the draft offered for various consultations and Council of Ministers is planning for its adoption in the third quarter of this year.

The reported purpose of this amendment is to clarify and simplify the process of reporting and to pay taxes from crypto-related trading revenues. This announcement of the proposal came after an initial decision of taxing all the digital money transactions whether it suffers gains o loss. However, this was met with a protest by Polish crypto community. This made the Finance Ministry regard the laws carefully before agreeing to its imposition unless there is a clear solution of what to go ahead.

The law introduces virtual currency as “digital representation of value,” according to the Act on Counteracting Money Laundering and Terrorism Financing. As a result, there is now a clear division between the two kinds of virtual currency, cryptocurrency, and centralized virtual currency.

The virtual currencies and legal text details also serve as a medium of exchange which can expect as a form of payment. These exchange details can be transferred and stored electronically as well as useful in e-commerce in transactions.

The amendment will be regarding the taxation of personal and corporates enterprises. The principal declaration of the will is to identify virtual currency transactions and incorporate individual incomes and that of businesses. Moreover, it also includes exchange sale on cryptocurrency trading working on individual platforms that offer deals in the current market.

The revenues will be calculated from the sales and services of goods as well as on the cryptocurrency property treated as capital gains. The exchange between the cryptocurrencies is not taxable in these cases. The cryptocurrency miners are also meant to pay taxes on the profit acquired from the sale of cryptocurrency miners.

In the case of an individual or self-working miner pays for cryptocurrency trading on behalf of any other individual or companies, they will charge with a tax on the number of remuneration. If they choose to convert their cryptocurrency to fiat for paying their clients, the entire amount will calculate as tax and revenue on the total amount.

These requirements reports on the yearly tax returns and settlements must be made once a year. Those taxpayers who are dealing with cryptocurrency won’t have an obligation to pay their taxes in advance. Current law applies tax scale on 18% on annual income for up to 20,000 Euros and above this limit will have to pay 32% on the aggregate. These rules are subjected to change next year.

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