Polish government does not want cryptocurrencies in Poland. First, they made an anti-cryptocurrency campaign in which they used influencers and YouTubers.
Now the government released a new tax law interpretation which makes trading cryptocurrencies a ‘very expensive hobby’.
Trading in cryptocurrencies generates revenue, among others, in cases like:
- sale of cryptocurrencies (converting cryptocurrencies into a traditional currency, e.g. zloty (PLN), euro (EUR), US dollar (USD),
- replacing cryptocurrencies with other cryptocurrencies, goods or services. Replacement of cryptocurrencies should be treated as a form of its payable disposal, in the same way as the exchange of any other property rights, for example receivables.
Another important interpretation is
- Income from trading in cryptocurrencies qualified for property rights which makes you pay the tax on Civil Law Transactions (PCC) while trading cryptocurrencies.
It means that,” the contract for the sale and conversion of cryptocurrencies, which is a property right, is subject to the tax on civil law transactions (PCC) . In the case of a sales contract, the obligation to pay this tax – in the amount of 1% of the market value of the acquired property right sold to the cryptocurrency – concerns the buyer.”
There are a lot of people who are confused as far as paying taxes is concerned. They simply don’t know how to settle their taxes from cryptocurrencies. This situation worries them and leaves with uncertainty. That interpretation only says that you need to pay a lot of money from trading. As one of the users of Reddit wrote:
Those calculations may be correct. When you combine PCC tax with the tax interpretation you need to pay 1% of the value for every crypto-crypto transaction. It makes cryptocurrency trading impossible because of the taxes you will have to pay.
$500.000 tax from $15.000 investment can make cryptocurrency trading impossible, without banning them. Polish government tries to kill one of the fastest growing industry in the world without regulations.
For us, we need regulations to fight with scams but not with cryptocurrencies itself.
What do you think about those tax interpretation?
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Last modified: April 7, 2018
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