Polish Parliament Approved Tax Act Amendment
On Tuesday at the evening session, Polish approved a new amendment. The new version of the Tax Act includes more precise taxation of cryptocurrency trading.
First, there have been disturbing reports suggesting that Poland fights with crypto. Then, there was the anti-crypto campaign directed by KNF, a polish financial authority. The very first breakthrough came in June when the KNF announced that cryptocurrency trading is absolutely legal.
New tax amendment
ℹ️Sejm przyjął nowelizację ustawy o podatku dochodowym od osób fizycznych, ustawy o podatku dochodowym od osób prawnych oraz niektórych innych ustaw. pic.twitter.com/MXVopp6mOm
— Sejm RP (@KancelariaSejmu) 23 października 2018
The new regulation will tax virtual currency and will qualify it as ‘an income from money capital or capital gain’. However, losses from crypto transaction won’t be deductible.
A taxpayer will have to settle his/her taxes using PIT-8C, a tax declaration which until now was used to settle income from stock exchanges. It means that the crypto traders will pay 19% from their earnings. According to legislators, the new amendment is:
“an opportunity to end this disarray, which concerns not only crypto taxation but also virtual currency legal status.”
The Polish parliament also wants to implement the Exit Tax. The regulator will use this to tax the so-called hidden reserves. Jakub Żak, a partner in Deloitte’ tax consultancy department, said:
“The main goal for the Exit Tax is to secure financial regulators with the hidden reserves, the difference between market value and the tax value of assets shipped out from Poland.”
Simply put, every Polish crypto investor will have to pay a big tax, if he/she would want to take his business outside the country.
371 members of the parliament were for the new amendment, 44 voted against and 11 decided to abstain.
Image by Fotokon / shutterstock.com
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