The Poland industry seems to be cautiously creating new regulations that will require cryptocurrency traders to declare their revenue from the sale of cryptocurrency during this year and plans to subject them to a tax rate made up of 19%
As of this 2019, the tax authorities plan to treat cryptocurrency trade in the same fashion as revenue done through the stock market. Although, the tax rate will be much lower for crypto investors.
“In practice, this means that the [applicable] tax rate will be lowered from 32% to 19% for those investors whose revenues will exceed the first tax threshold,” according to Marcelina Szwed-Ziemichód, a tax advisor from tax advisory firm MSZTax.
Meaning that the effective tax rate for revenues conducted from the sale of cryptocurrency will be kept at the steady rate for the threshold, which is currently set at 19%, also for those traders who revenues surpass 19,911 in Euro for a single year.
However, the Finance Ministry of Poland has stated that out of the 40 million people living in the country, they are unsure as to how many of its citizens trade crypto currently.
Another regulatory development will be setting off during July in relation to a controversial 1% tax for civil law transactions by cryptocurrency traders. The ministry’s regulation during July 12th will temporarily suspend the tax’s collections between July 13th, 2018 and June 30th, 2019. Even so, the Finance Ministry has stated that its currently analyzing other ways it can properly tax cryptocurrencies.
Taxing cryptocurrencies isn’t exactly anything new but it may lead to some negative impact caused within the Poland crypto scene, depending on how will the Finance Ministry handles it during the coming year. If anything, it’ll be interesting to see how many decide to continue trading crypto in Poland during the coming developments.
What are your thoughts on the taxation of Crypto?
Let us know your thoughts.