Poland Clarifies Virtual Currency Taxation, Proposes New Bill

Lawmakers in Poland have introduced a new bill which is aimed at distilling the cloud of uncertainty hovering over its position on digital currency taxation policy. The Polish government published a document on its official website dated August 24.
It was further stated that an additional document has been offered for the sole purpose of consultation, the Polish Council of Ministers will review it in Q3 of this year. It is worthy to make reference to the previous taxation policy this year which did not go well with the Poland digital currency society. The lawmakers clearly learned from history and made necessary adjustment in the new bill. The government stated that the legislation is meant to simplify the seemingly cumbersome taxation system for cryptocurrency transactions.
To begin with, the bill defined virtual currencies regarding Act on Counteracting Money Laundering and Terrorism Financing as a “digital representation of money.” Also, digital currency is categorized into two groups namely; cryptocurrency and centralized virtual currency. It allows the virtual currency to be used as a means of exchange not only in electronic commerce but also as an acceptable means of payment.
For taxation, the bill made equally provides for both individual and business institutions. It states that crypto-to-crypto transactions performed on the stock exchange will not be considered taxable; also income from selling service products, property and goods will be regarded as revenue for taxation purposes.
The new bill also made provisions for crypto miners noting that individuals operating in sole entrepreneurial scale would not be charged, but others who are employed or contracted by firms or individual will be mandated to remit their taxes.
This new bill, if successfully passed, is expected to massively contribute to the government revenues as the current taxation system in the country stands at 18% which represents the annual income of about 85,500 zloty ($23,000) and 32% for incomes above this limit.
This year started with a massive anti cryptocurrency campaign in Poland. In February, the Central Bank of the country confirmed the suspicion of $27,000 worth of content targeted at the virtual currency; this was first uploaded on YouTube before it made it to the local media outlet. Later in the year, another massive campaign was organized by KNF (Poland’s financial regulatory agency).
The local financial Ministry has made a promise to elaborate on the somewhat vague and overly harsh regulations. This promise must have been heed to polish crypto community speaking out against the new taxation for the virtual currency operation.
Despite the promises, it was reported in June that digital currency asset holders in Poland accused financial institutions of deliberately disallowing financial service to digital currency entities and the serial closure of crypto-related bank accounts.

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