MoF justifies decision to not tax crypto due to a prior need to conduct in-depth analysis.
The country of Poland’s financial ministry released a new publication to update the tax codes of the country. The release stated that it won’t tax any income that is made from the use of cryptocurrencies will be taxed.
The MoF backed its decision to not tax cryptocurrency transactions because the country said it’s only fair that the decision be made following and in-depth analysis to better regulate the new industry that is quickly emerging.
Under the new decision, crypto-traders will be exempt from paying taxes following the previous requirement of two tax brackets of 18 percent and 32 percent whether they made a profit or not.
This is extremely painful for the virtual currency traders in the country of Poland. One of the guidance of the ministry in the past had previously viewed the transaction of cryptocurrency an actual transfer or property – completely with rights. This in turn triggers a one percent level on market value of each trade.
Since the update the ministry released three weeks after the deadline for the poles, the topic has been all over the media. It followed the deadline for filing their annual personal income statements that went into effects on April 30th.
The Polish Governemnt also announced recently they would crackdown on cryptocurrencies around growing concerns that the digital currency is being used to illegally launder money and even illegal activities like ta evasion. The Council of Ministries has taken on a new drat to regulate Bitcoin and other altcoins in order to keep them in line with anti-money laundering and illegal tax evasion problems as well as stopping the crypto from being used for terrorism.
The statement that was released on Google, also reads:
” In consequence of the adoption of such interpretation, if trading cryptocurrency is made on the basis of a contract of sale or exchange, it becomes subject to tax on civil law transactions. Taking into account the specificities of virtual currencies, which boils down to rotate the rights of property through their purchase, sale and the exchange, and therefore the repeated conclusion of sales and exchange contracts, on the side of the entity trading virtual currency may arise the obligation to pay tax in an amount often exceeding the funds invested.”
And it finished with:
“Temporary abandonment of tax collection will allow for an in-depth analysis and preparation of system solutions regulating this economic space, including in the tax context”