Polish ministers will review and pass new cryptocurrency taxation law later this year

The Polish Council of Ministers will meet sometime in the last quarter of 2018 to review a bill introduced by legislators regarding the current cryptocurrency taxation policy.

Lawmakers in Poland introduced the new bill on the issue of crypto taxation on 24th August which is expected to substitute a previous taxation policy that was rejected by the country’s cryptocurrency community.

The objective of the new bill

The Polish government says the objective of the new bill is to simplify the country’s tax system for crypto transactions, local media outlet Kryptowaluty reports.

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The new 156-page bill has been published on the government’s website. It defines cryptocurrencies as a digital representation of money regarding the Act on Counteracting Money Laundering and Terrorism Financing.

Crypto divided in two groups

According to the bill, virtual currencies are divided into two groups: cryptocurrency and centralised virtual currency. These currencies are permitted to be utilised as a medium of exchange, for the purchase of goods and services in e-commerce and as a means of payment, the document states.

Taxation of crypto activities

The bill also touches on the issue of taxation of crypto activities carried out by businesses and individuals. It further states that all crypto-to-crypto transactions via a stock exchange or individually will not be taxed. However, income from the sale of services, properties and goods will be considered revenue for purposes of taxation.

Crypto miners who work independently will not be taxed on any income, but those who work for entities or other individuals will be forced to pay taxes.

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Crypto-related taxes, according to the bill, will be settled in the annual tax return. Taxpayers will not be required to pay tax advances during the year.

Under Poland’s current taxation system, annual income up to $23,000 (£17,663) and 32% for income beyond that limit.