Poland Clarifies Crypto Taxation In New Billbr>
Poland’s Government Legislation Center has published a new draft bill that clarifies the country’s current crypto taxation policy.
The draft bill, which has been offered for consultation, is aimed to simplify and clarify the income reporting and taxation procedures for activities related to cryptocurrencies. The bill defines virtual currency as a “digital representation of value.” It also divides virtual currencies into two groups – cryptocurrency and centralized virtual currency. The draft law states that virtual currencies can serve as a means of exchange and be a means of payment, stored and transmitted electronically, and used in e-commerce.
As for taxation, the bill addresses both natural persons and corporate entities. It states that crypto-to-crypto transactions performed on the stock exchange or individually will be tax free. At the same time, income from selling services, property, and goods will be treated like revenue for taxation purposes. Crpto miners who mine on their own will not be taxed, but those who work for a company will be obliged to pay taxes.
Currently, Poland applies a progressive income tax scale with two brackets – 18 percent for annual incomes of up to 85,528 zloty ($23,000), and 32 percent for those above this limit. The Polish Council of Ministers is expected to review new draft bill in the third quarter of 2018.