New Polish regulation on crypto: the government has announced a bill to amend the country’s tax rules and make them suitable for handling cryptocurrencies and the profits they can generate.
The aim of the rule is to clarify and simplify the procedures for declaring profits and paying taxes on virtual currency activities, clarifying a much-discussed earlier decision to tax all cryptocurrency transactions regardless of whether they generate a loss or a gain, which the government itself described as irrational.
In line with anti-money laundering and anti-terrorist financing standards, virtual currencies are defined as “virtual representations of values“, with a differentiation between centralized and decentralized.
The draft legislation provides that fees are to be paid by both legal entities and individuals.
As far as trading is concerned, capital gains will be taxed and taxation is envisaged if cryptocurrencies are converted into fiat currencies and if they are used to purchase goods, but capital gains deriving from cryptocurrency trading between them are not taxed.
The capital gain will be considered only when leaving the crypto world.
Mining revenues, whether carried out by companies or by individuals, will also be taxed: it does not matter whether this is carried out on one’s own behalf or on behalf of third parties. In the latter case, the remuneration for carrying out the activity will be taxed, but only if not converted into fiat, because, in this case, all the proceeds will be considered income.
All these proceeds will have to be included in the income tax return on which individuals pay a progressive tax from 18 to 32 per cent.
A particular advantage is that no advance tax will be due on the profits made by virtual currencies, taxes will be paid only on what’s declared.
